THE INDIAN PERSPECTIVES of TNCs

India had a restrictive foreign direct investment policy till 1990. Even then a large numbers of operated in India either through collaboration with Indian enterprises through minority share holdings or through their own subsidiaries. The TNCs even then had dominated many consumer industries. Many of them had nearly 60-70 per cent of the market share. Many TNCs found that the India's domestic market was large and hence persisted to operate within the framework of the Indian policies.

Since 1991, the Indian Government has liberalized its Foreign Direct Investment (FDI) policy. Hence, India has emerged as an important market for serious considerations of TNCs' operations. Generally, large TNCs like Philips, Union carbide, Unilever, Glaxo, Boots, Welcome, Coca Cola, Pepsi, IBM, Brooke Bond, ITC are operating in India. They are entering in a large number of consumer industries as well. International Banks are also showing interest in the Indian economy. The free entry of TNCs is, however, still subject to some concern in Indian industry and political circles. Indian industry fears that the TNCs with the liberalized policy of the Government will adversely affect the operations of the domestic enterprise. Therefore, many of them seeking level playing fields for them. Political parties are wary about the domination of TNCs on Indian economy. But the debate is rather weak. Hence we can conclude that TNCs will increasingly come to India. But their primary pre-occupations, one can envisage, would be to exploit the growing domestic market. 

Indian Companies Operating Overseas 

Indian policy on joint ventures has now permitted Indians to establish not only joint ventures but also owned subsidiaries. There are various subsidiaries either established overseas or in the process of getting established. But they have not acquired a status of TNCs. Among the TNCs of developing countries only Tata Steel Works is treated as an emerging TNC. It will take some time for Indian companies to acquire the status of a TNC.