Role of MNCs in the Indian Economy

India's approach to MNCs changed sharply with the New Economic Policy of 1991 (economic liberalisation, privatisation and globalisation reforms), which relaxed the earlier restrictive licensing regime and actively opened the doors to foreign investment and MNC entry. Since then, MNCs have become a visible and significant part of the Indian economy across several sectors.

• Automobiles. Global automobile MNCs entered India through joint ventures and wholly owned subsidiaries, transforming Indian roads and the domestic auto-component industry, and turning India into both a large market and an export manufacturing base for passenger vehicles and two-wheelers.
• Fast-Moving Consumer Goods (FMCG). MNCs in food, beverages, personal care and household products have long-established Indian operations (several through decades-old joint ventures/subsidiaries), and remain among the most widely recognised MNC brands sold across urban and rural India alike.
• Information Technology and software services. Global IT and software MNCs set up large development centres and back-office operations in Indian cities, contributing substantially to software exports and to skilled white-collar employment — while, in the other direction, several Indian IT companies have themselves grown into MNCs with operations abroad.
• Telecommunications. Foreign telecom MNCs entered the Indian market (directly or through joint ventures) following the opening up of the sector, contributing to the rapid expansion of mobile telephony and internet access across the country. …