Question

critically examine the role of MNCs in a developing economy such as india 250 word's answer​

Answer 1

Answer:

Prior to 1991 Multinational companies did not play much role in the Indian economy.

In the pre-reform period the Indian economy was dominated by public enterprises.

To prevent concen­tration of economic power industrial policy 1956 did not allow the private firms to grow in size beyond a point. By definition multinational companies were quite big and operate in several countries.

While multinational companies played a significant role in the promotion of growth and trade in South-East Asian countries they did not play much role in the Indian economy where import-substitution development strategy was followed. Since 1991 with the adoption of industrial policy of liberalisation and privatisation rote of private foreign capital has been recognized as important for rapid growth of the Indian economy.