India has been the home to a number of multinational companies.

In fact, since the financial liberalization in the country in 1991, the number of multinational companies in India has increased noticeably. Though majority of the multinational companies in India are from the U.S., however one can also find companies from other countries as well. Today, virtually all the big MNCs in the world have operations in India. These include Unilever, BAT, Colgate Palmolive, Procter & Gamble, General Electric, General Motors, Ford, Pepsi, IBM, Intel, Texas Instruments, Microsoft, Oracle and Coca-Cola. India is now considered by many MNCs to be a strategically important market. There are a number of reasons why the multinational companies are coming down to India. India has got a huge market. It has also got one of the fastest growing economies in the world. Besides, the policy of the government towards FDI has also played a major role in attracting the multinational companies in India. The list of multinational companies in India is ever-growing. According to the World Investment Report 2010, issued by the UNCTAD (United Nations Conference on Trade and Development), the FDI inflow into India has been US$ 34,613 million in the year 2009. China is the only other country from the Asian region that tops the list of countries with largest FDI inflows for the year 2009. Hence, it is clear that India provides a green ground to the MNCs. The rise of MNCs in India is going to be a hot topic at the Group Discussion rounds at B-schools this year. To help you prepare well and increase your knowledge bank today we discuss the pros and cons about the rise of MNCs in India. Pros -- India offers a grand opportunity to the MNCs with its large pool of talent and a market that is fast growing. MNCs are now developing more strategic partnerships with the Indian industry. -- The MNCs and the Indian industry are gaining a lot from each other. The MNCs are bringing in and adapting global best practices to help solve local problems and help India get interlinked better with the global economy. -- MNCs have become growth partners and have a major role to play in Indias development. MNCs are investing with long term horizon to help India realize its potential in new areas. -- MNCs are focusing on catering to the larger population, not just the affluent class. Example, Hindustan Unilever Limited --MNCs are helping diffuse technology and innovation in key sectors, such as pharma, solar energy, agriculture, biotech, nuclear, defense. -- MNC's have influenced the whole business infrastructure in India, and it is not only job opportunities, but we are able to really understand where we stand in the international scenario. And this has helped us to develop our businesses to compete with any country. We have understood what global market demands are.

This understanding of international markets has contributed to Indian companies going multi national, such as Tata, Bharti Group and many others. -- Filling the gaps left by government, MNCs have built roads in rural India that help them deliver their goods, provided education and health care for communities whose workforces they rely upon, and implemented environmental programs to protect precious natural resources needed to keep supply chains running smoothly. Other key positive points: Brain gain instead of brain drain, Cheaper goods; Increased foreign exchange; MNC's have made entire world a Global Village; Monopoly reduction; new work culture; diversified portfolios. Cons -- Though it has given boost to our economy, foreign reserves and more physical means to enjoy, but has created vast difference between those who have and those who have not. Rich have become richer while the poor have become poorer. -- Multinationals create false needs in consumers and have had a long history of interference in the policies of sovereign nation states. Other Negative points: -- Indigenous products may suffer -- Security threat might be there -- Often, no profit except taxes remain in home country -- Employment imbalance -- Give rise to materialistic societies.