Why do multinational corporations come to India?

Promotion Foreign Investment: MNCs can bridge the gap between the requirements of foreign capital for increasing foreign investment in India. Thus their incomes also go up by investment by a Japanese multinational in Maruti Udyog Limited in India.

Why is it important to have multinational companies?

A multinational corporation helps the technological growth of the country as well. They bring new innovations and technological advancements to the host country. They help modernize the industry in developing countries. MNCs also reduce the host countries dependence on imports.

What are three advantages of multinational companies?

Advantages of MNCs are: Better emplyment opportunities Development of new technologies Improvement in infrastructure Availability of variety of goods

• Better emplyment opportunities.
• Development of new technologies.
• Improvement in infrastructure.
• Availability of variety of goods.

What is the need of multinational companies in the economic development of our country?

MNCs can bridge the gap between the requirements of foreign capital for increasing foreign investment in India. The liberalised foreign investment pursued since 1991 allows MNCs to make investment in India subject to different ceilings fixed for different industries or projects.

What do you think about the role of multinational companies in the Indian economy?

MNCs provide employment opportunities and helps in solving the unemployment issue to some extent. As the wages will in turn be spent on buying goods and services in India, it’ll be helpful for the Indian economy. The government will also get revenue in the form of taxes that MNCs pay.

What are the main reasons for the economic development of India?

Top 6 Reasons that Economic Development is Important to a Region’s Economy [Infographic]

• Job creation.
• Industry diversification.
• Business retention and expansion.
• Economy fortification.
• Increased tax revenue.
• Improved quality of life.

What benefit can India get if Indian companies become multinational?

What are the three importance of IT sector for the Indian economy?

(i) It has provided employment to over one million people. (ii) This industry is said to be a major foreign exchange earner. (iii) It has helped in the growth of the service sector. (iv) It provides employment to innumerable men and women.