Indian Multinational Corporations and Their Role and Impact on Indias Foreign Policy Making

Abstract

Indian MNCs are playing important role in the economic system of developing countries. newlineTheir importance role in the world economy has been growing significantly since 1990s. An newlineincreasing number of Indian farms across wide range of sectors are undertaking large newlineoverseas thesis and their focus is gradually shifting towards developed countries. Now a newlinemuch contested issue that Indian MNCs and their Foreign Direct Investment (FDI) are newlineaffecting the economic development, living standard, poverty reduction efforts and growth newlinerates in India is surfacing. The emergence of Indian multinationals demands a better newlineunderstanding of the activities- motivations underlying their trans-border expansion, sectoral newlineand their geographical composition of their global presence, model of market entry and types newlineof strategies adopted and their impact on world development. They are generally seen as the newlineprocess of creating social, political and economic networks. It makes easy for everyone to newlinehave an easy access to various consumer products from different countries of the world. They newlineare also connecting among peoples who are belonging to different countries. It has attempted newlineto bring out various aspects of the Indian MNCs and their role in the world economy, which newlinehave to be looked very critical to have a clear understanding of the process and also keeping newlinein the mind the problems of the India and developing countries. Even today Indian foreign newlinepolicy plays a crucial role in the development process. Therefore, in this thesis I have first newlinereview the import- export regimes as have evolved over various five year plans in India and newlinethen offer my views on the present foreign trade strategy. newlineIndian policy makers strongly believe in south- south cooperation and had encouraged joint newlineventure form of Outward Foreign Direct Investment (OFDI) as a mutual beneficial way of newlineIndia s industrial and technological experiences with other developing countries. The newlineinvestors should go for joint ventures with minor ownership