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"India·s computer scientists are among the leaders of companies worldwide.

"
Bill Gates, Chairman, Microsoft Corporation

´In this century India's economy will be larger than the United States.´
Bill Clinton, Former President of the United States

MULTINATIONAL COMPANIES AND SMALL SCALE INDUSTRIES-THEIR IMPACT ON INDIAN ECONOMIC GROWTH

WHAT IS SMI/SME
Small Scale Industries are those that are engaged in manufacturing, processing and preservation of goods whose investment in plants and machinery does not exceed 1 crore  They can be registered as Small-Scale Industry by General Manager, District Industries Sector 

In India SME·s provide job opportunity to more than 65 million people  Internationally SME·s report 98% of business Statics  .

5 lacs in Plant & Machinery Upto Rs 10 lacs in Plant & Machinery Upto Rs 20 lacs in Plant & Machinery Upto Rs 35 lacs in Plant & Machinery Upto Rs 60 lacs in Plant & Machinery Upto Rs 100 lacs in Plant & Machinery Upto Rs 100 lacs in Plant & Machinery 1975 1980 1985 1991 1997 1999 .YEAR 1960 1966 INVESTMENT LIMITS Upto Rs 5 lacs in Plant & Machinery Upto Rs 7.

SME SECTOR ± SIGNIFICANCE IN INDIAN CONTEXT   SMEs are generally less capital-intensive and more labour-intensive. China and most of the developing world having abundant supply of low-cost manpower and bountiful natural resources Have provided seed bed for Enterprise Development in the country Provide large scale employment. ensure equitable distribution of income and facilitate effective mobilization of resources of capital and skills. Are best suited for countries like India. Infra-structure. which would otherwise remain unutilized. financial instruments. R&D. marketing and export development Consequently. India is fast emerging as a global hub for labour-intensive manufacturing and knowledge-oriented businesses. particularly in rural and backward areas. India has already established a niche in SME Development Strategy and providing excellent support in product development.      6 .

TYPES OF SSI Small Scale Industrial Undertaking  Ancillary Industrial Undertakings  Tiny Enterprise  Enterprise by Women Entrepreneurs  Cluster development  EOU  .

GROWTH OF SSI .

SSI CREATOR OF JOBS .

S.  Potential for employment  Effective mobilization rural resource  .INHERENT ADVANTAGE OF S.  Low capital intensive.I Shorter gestation period  Low cost of establishment  Widely dispersed building wider industrial base.

SME·s are major source of entreprenerial skills. technology and innovation It is the second largest employer of Human Resource .

´ The Small Scale Industry today constitutes a very important segment of the Indian economy .

REASONS WHY SME·S HAVE GROWN Operational Flexibility  Significant Export earnings  Technology-oriented industries  Location wise mobility  Contribution towards defense production  Import Substitution ect  .

Multinational corporation (MNC) is a enterprise that manages production or delivers services in more than one country can also be referred to as an international corporation.WHAT ARE MNC·S  MNC·s are huge industrial organizations which extend their industrial and marketing operations through a network of their branches or their Majority Owned Foreign Affiliates.   . MNC·s are also know as Transnational Corporation (TNC·s) or multinational enterprise (MNE) or multinational organization (MNO).

1st MNC in world 1st MNC In India 1st Indian MNC¶s Dutch East India Company IBM Infosys .

TYPE OF MNCS:Multinational corporations (MNC) are often divided into three broad groups    Horizontally integrated multinational corporations Vertically integrated multinational corporations Diversified multinational corporations .

Development of basic economic infrastructure.       . Exploitation of natural resources.NEED FOR MNC Sustaining a high level of Investment. Technological gap. Undertaking the initial risk. Foreign exchange gap.

SWOT ANALYSIS OF MNC Strengths Low cost Well Developed infrastructure Weakness Location is often very distant Lack of transportation facilities Relative inflexibility Opportunities Leverage Government Create the necessary infrastructure Attract new industries Threats Emergence of private companies Establishment of monopoly .

MNC IN INDIA MNC in India are attracted towards:     India·s large market potentials India presents a remarkable business opportunity by virtue of its sheer size and growth Labor competiveness India·s vast population is increasing its purchasing power .

TRENDS OF MNC·S IN INDIA«   First MNC in INDIA is EAST INDIA Co. Also insurance companies like AIG and Max New York Life Insurance doing business in India.   . in 1600 American companies accounts for around 37% of the turnover of the top 20 firms operating in India Finnish mobile handset manufacturing giant Nokia is the largest Multinational Corporation In India.

TOP TEN BRANDS IN THE WORLD IBM Microsoft LG Toyota Samsung Nokia Hyundai Fiat Nike Ford Sony .

. Goods are made available at cheaper price due to economies of scale. Job and career opportunities at home and abroad in connection with overseas operations. Encourages the world unity and all resulting in world harmony. Promotes exports and reduce imports by raising domestic productions.CONTRIBUTION OF MNC TOWARDS GROWTH       MNCs create employment opportunities in the host countries. It helps to create a pool of managerial talent in the host country. Helps removal of monopoly and improve the quality of domestic made products.

Increase investment level  Transferring the technology  It increase host country exports & reduce its imports  Integrating national economy  Implementing new innovations  Increase competition  .CONTD«.

BENIFITS OF MNC·S       MNC·s have become vehicles of technology to the developing countries. Varity of goods and services produced for local customers. Practice of MNC·s bring to the host country. Greater employment and career opportunities are provided by these MNC·s. MNC·s make commendable contribution to inventions and innovations in the host country. . the latest technique in the field of management. FDI attractiveness.

enhances continuity. leverages understanding of local environment  Localized product / market business models : Create customized products and services in response to unique environment in India  Deliver the right product at the right price with right positioning for India .SUCCESS FACTORS OF MNC·S IN INDIA  Commitment at global level Raise the profile of India  Formulation of bold long term targets   Empowered local Management  More cost effective.

IT) . IT.WHAT HAS INDIA GAINED?  Working  Systems  Training culture for employees and Learning  Technology ² especially concept of working with better technologies  Safety Health and Environmental Learning  Culture and Ethos  Excellent training grounds for many entrepreneurs  R&D Outsourcing ² Pharmaceuticals. Telecom  Product development centers (Telecom. Engineering.

µ . ´Unfortunately India could never participate in the industrial revolution because it lacked financial capital. while delivering a speech at the CII symposium in 1974 said. 20 years from now.CONCLUSION: The first Vice Chairman of TCS. But. 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.

 .CONCLUSION Due to these MNC¶s and SME¶s.  New company having network to expand their business.  Gives advantages to domestic companies thru purchasing of raw material & resources. competition increase and more employment opportunities are available.

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