Multinational corporations play a major role in India by providing foreign capital, investment, and jobs. They help solve problems of lack of capital and foreign exchange through investments in factories, offices, and production facilities. This increases trade and integration of markets. MNCs also help local producers reach global markets. They spread production activities across countries by designing products in one, manufacturing in another with lower costs, and providing customer support from locations like India with skilled labor. MNCs bring benefits like higher wages, lower prices, technology transfer, and stimulus for domestic investment. Their growth is due to advantages in size, finances, technology, marketing, and research and development globally.

1. ROLE OF MNCS IN INDIA
Dr. Sunita Sukhija
Assistant Professor in Commerce
Govt. National College, Sirsa(HRY)

2. MULTINATIONAL CORPORATIONS
 Multinational corporations are enterprises or
organizations with services spread across more
than one country on a global scale. India is a home
to a number of multinational companies since the
country’s market was liberalized in 1991. Multi
National Corporations (MNCs) are huge industrial
organizations which extend their industrial and
marketing operations through a network of their
branches or their majority owned Foreign Affiliates
(MOFAs). MNCs are also known as Transactional
corporations (TNCs).

3.  (i) MNCs are playing a major role in the
globalisation process.
 (ii) More and more goods and services, investments
and technology are moving between countries.
 (iii) Most regions of the world are in closer contact
with each other than a few decades back.

4. ROLE OF MNCS
 (i) Availability of capital and foreign investment
: The Multinational Corporations or the MNCs help
to solve the problem of capital and foreign
investment of the underdeveloped and the
developing countries. Most of the underdeveloped
countries suffer from lack of capital . Consequently,
their rate of economic growth is low. MNCs set up
factories, and offices for the production in these
developing and the underdeveloped countries, and
make huge investments . The money that is spent
to buy assets such as land , buildings, machines
and other equipment, is called investment.

5.  (ii) Availability of foreign exchange : MNCs can
be helpful in solving the problem of foreign
exchange of the underdeveloped and the
developing countries. In 90s, India faced a huge
shortage of foreign exchange but, with the entry of
the MNCs, today it has surplus foreign exchange
reserves .
 (iii) Foreign trade and integration of markets
: the MNCs help in the integeration of world
markets . With the entry of MNCs even the small
countries have opened up their domestic markets
for other countries . The MNCs increase the foreign
trade.

6.  (iv) Helpful in the growth of local
producers: Foreign trade by the MNCs create an
opportunity for the local producers to reach beyond
the domestic markets , i.e , markets of their own
countries .
 (v) By spreading production activities : MNCs
spread their production activities in different parts of
the world . For example they design their products
in United States or Japan , then manufacture it in
China where cheap labour is available and the
customer care is carried out through call centres
located in India as India provides cheap skilled as
well as unskilled workers .

7. OTHER BENEFICIAL ROLES :
 The MNCs also bring several other benefits to the host
country.
 (a) The domestic labour may benefit in the form of higher real
wages.
 (b) The consumers benefits by way of lower prices and better
quality products.
 (c) Investments by MNCs will also induce more domestic
investment. For example, ancillary units can be set up to ‘feed’
the main industries of the MNCs
 (d) MNCs expenditures on research and development(R&D),
although limited is bound to benefit the host country

8. REASONS OF GROWTH OF MNCS
 International Image
 Giant Size
 Financial Superiority
 Technological Superiority
 Marketing Superiority
 R&D Superiority

9. THANKS