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SUBMITTED BY: RISHI SHUKLA SHAILI NIGAM
“ Bill Clinton. Chairman. Microsoft Corporation “In this century India's economy will be larger than the United States. Former President of the United States . "India’s computer scientists are among the leaders of companies worldwide." Bill Gates.
OTHER FACTORS: Economic Liberalization The Economic Policy Reforms The Indian Innovation System after 1991 Government Support for Technological Innovation Geographical Clustering .
A weighted tax deduction of 125% is allowed for sponsored research in approved national laboratories and institutions of higher technical education. A company whose principal objective is research and development is exempt from income tax for ten years from its inception. A weighted tax deduction of 150% is allowed on R&D expenditure by companies in government-approved inhouse R&D centres in selected industries.GOVERNMENT SUPPORT: Both revenue and capital expenditure on R&D are 100% deductible from taxable income under the Income Tax Act. . Accelerated depreciation is allowed for investment in plant and machinery made on the basis of indigenous technology.
Excise duty exemption for three years on goods designed and developed by a wholly owned Indian company and patented in any two countries out of: India. the United States. Customs and excise duty exemptions for capital equipments and consumables required for R&D. . Japan and any country of the European Union.
1 6.2 9.4 7.5 3.1 4.8 GDP Growth Mfg Growth -05 20 04 20 01 -02 20 02 -03 19 97 19 98 -00 20 00 20 05 19 99 % -06 .4 4.8 5.9 6 7.4 9.10 9 8 7 6 5 4 4.1 8.5 5.4 2.5 6.8 3 2 1 0 -98 -99 -01 20 03 -04 8.7 7.3 6.
Multinational Corporations Multinational corporation (MNC) or transnational corporation (TNC) or multinational enterprise (MNE) or multinational organization (MNO) It is a corporation/business entity/enterprise that manages production establishments or delivers services in at least two countries. TYPE OF MNCs:- Multinational corporations (MNC) are often divided into three broad groups:- .
many countries. sometimes compete with each other to have MNCs locate their facilities (and subsequent tax revenue. Given their international reach and mobility. and economic activity) within. employment. Horizontally integrated multinational corporations Vertically integrated multinational corporations Diversified multinational corporations Multinationals have played an important role in globalization. . and sometimes regions within countries.
makes it one of the fastest growing economies in the world Lucrative and diverse opportunities for U.Facts on India WHAT INDIA OFFERS One billion plus population India ranked 10th largest economy.S. 4th largest in terms of Purchasing Power Parity 250-300 million middle class Gross Domestic Product (GDP) growing at over 8-9 %. exporters with the right products or services Easier access to capital .
exporters with the right products or services Easier access to capital . 4th largest in terms of Purchasing Power Parity 250-300 million middle class Gross Domestic Product (GDP) growing at over 8-9 %.Facts on India WHAT INDIA OFFERS One billion plus population India ranked 10th largest economy.S. makes it one of the fastest growing economies in the world Lucrative and diverse opportunities for U.
POLICIES THAT HELPED MNCs GROW IN INDIA FDI Policy: Most sectors including manufacturing activities permitted 100% FDI under automatic route (No prior approval required) Industrial Licensing : Licensing limited to only 5 sectors (security. Original investment. public health & safety considerations) Exchange Control: All investments are on repatriation basis. profits and dividend can be freely repatriated Taxation: Companies incorporated in India treated as Indian companies for taxation Convention on Avoidance of Double Taxation with 71 countries including Korea .
CONCLUSION: The first Vice Chairman of TCS. But. while delivering a speech at the CII symposium in 1974 said. 20 years from now.” . there will be a knowledge revolution in the world and India will participate in it because India has the highest knowledge density in the world and it is for companies to harness this knowledge capital and make Indians leaders in the knowledge revolution. “Unfortunately India could never participate in the industrial revolution because it lacked financial capital.
Netherlands. the scenario for 'MNC in India' has changed a lot in recent years. since more and more firms from European Union like Britain. . Italy. Belgium etc have outsourced their work to India. 'Multinational Companies in India' But. French Heavy Engineering major Alstom and Pharma major Sanofi Aventis is one of the earliest entrant in the scene and is expanding very fast. Piaggio etc from Italy have opened shop in India with R&D wing attached. Germany. France. British Petroleum and Vodafone (to start operation soon) represents the British. Finland. Finnish mobile handset manufacturing giant Nokia has the second largest base in India.Automobile companies like Fiat. Ford Motors.
Infrastructure builders from Middle East are also flocking in India to catch the boom. Companies like Singtel of Singapore and Malaysian giant Salem Group are showing huge interest for investment. Oil companies. Japan is also not far behind with host of electronics and automobiles shops. South Korean electronics giants Samsung and LG Electronics and small and mid-segment car major Hyundai Motors are doing excellent business and using India as a hub for global delivery. .