MNCs bring investment, technology and employment to India. They promote exports and global business links. However, they may dominate local markets, reduce small-scale businesses and repatriate profits. Overall, MNCs impact both growth and competition.
“Analyse the impact of the presence of Multinational Corporations (MNCs) on the Indian economy.”
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MNCs have a significant impact on India’s economy, offering both opportunities and challenges. They bring capital, technology and employment while enhancing global business connections.
Investment: Foreign capital supports industrial expansion.
Technology transfer: Modern techniques improve productivity and skills.
Employment: Create jobs in factories, IT and services.
Exports and trade: Promote global trade and economic integration.
Challenges: Local businesses may face competition; profits are partly sent abroad.
Regulation needed: Government policies can balance benefits and protect domestic industries.