Going Global: Indian Mncs
ntroduction: Indian MNCs
Till a few years back, the term MNC in India meant an organization with its headquarters located outside India and having presence in India as a part of its global network. In other words, in Indian eyes,”MNC” meant a foreign company, which has come into India.
In recent times, however the business world has seen the emergence of a new breed of companies, which is beginning to be referred to as “India MNCs”.The Indian MNC is a company which is Indian in origin and spreading its wings to set up operations in various markets around the world. For Example Tata Steel,Hindalco Industries,Ranbaxy laboratories etc are some of the Indian MNCs.
Reasons for going global:
Over the last couple of years, Indian Companies has acquired a slew of foreign companies across a spread of sectors in their quest to go global. The rising tide of Indian investment overseas reflects the imperatives of operating in a globalised market place. Because of rising competition, Indian firms are now driven by the need to seek the cheapest resource mix and locate operations where these are available Globalization also entails that they seek larger markets that transcend geographical barriers. Both factors translate into a strategy of larger overseas investment .Changes in the International regulatory environment, particularly developments in the intellectual property rights (IPR) regimes are also critical drivers for Indian companies’ forays abroad. The liberalization announced will enable the Indian companies to take advantage of global opportunities and to acquire technological and other skills for adoption back home in India.
Following are the reasons that drive Indian Companies to spread their wings abroad:
1) Market distortions: In a world without tariffs and other ‘distortions’, exports and local production would be perfect substitutes. However, in the real world, distortions do exist and provides an incentive for firms to locate production facilities
Till a few years back, the term MNC in India meant an organization with its headquarters located outside India and having presence in India as a part of its global network. In other words, in Indian eyes,”MNC” meant a foreign company, which has come into India.
In recent times, however the business world has seen the emergence of a new breed of companies, which is beginning to be referred to as “India MNCs”.The Indian MNC is a company which is Indian in origin and spreading its wings to set up operations in various markets around the world. For Example Tata Steel,Hindalco Industries,Ranbaxy laboratories etc are some of the Indian MNCs.
Reasons for going global:
Over the last couple of years, Indian Companies has acquired a slew of foreign companies across a spread of sectors in their quest to go global. The rising tide of Indian investment overseas reflects the imperatives of operating in a globalised market place. Because of rising competition, Indian firms are now driven by the need to seek the cheapest resource mix and locate operations where these are available Globalization also entails that they seek larger markets that transcend geographical barriers. Both factors translate into a strategy of larger overseas investment .Changes in the International regulatory environment, particularly developments in the intellectual property rights (IPR) regimes are also critical drivers for Indian companies’ forays abroad. The liberalization announced will enable the Indian companies to take advantage of global opportunities and to acquire technological and other skills for adoption back home in India.
Following are the reasons that drive Indian Companies to spread their wings abroad:
1) Market distortions: In a world without tariffs and other ‘distortions’, exports and local production would be perfect substitutes. However, in the real world, distortions do exist and provides an incentive for firms to locate production facilities