please help me``how have india MNCs fared at the international arena?
Answers
Answer:
Multinational Corporations (MNC) operate in more than one country.
In 1991, India faced economic crisis and to lift the country out of crisis, Indian government rolled out economic reforms, and hence openly opted for economic liberalisation. This allowed private investments and thereby MNCs to operate in India.
Initially, many economists expressed fears over allowing MNCs to India. But with time, everyone is agreeing that MNCs are playing an important role in India and have been helpful for our economy.
Role of MNCs in India :-
Governments have so many responsibilities such as alleviating poverty, providing social security and to develop the nation financially etc. But with limited funds, it has to prioritise the things to do. In the process, it is very difficult for governments of developing countries to invest in economic development. MNCs help governments in this case and bring a lot of foreign investment which paves the way for economic development of the country.
Unemployment is one of the serious problems of India. MNCs provide employment opportunities and helps in solving this issue to some extent. As the wages will inturn be spent on buying goods and services in India, it’ll be helpful for Indian economy.
Government will also get revenue in the form of taxes that MNCs pay.