Factors Influencing MNCs Investment Choice in India

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Factors Influencing MNCs Investment Choice in India

The Asian economies have been the main focus of global investors for last few years because of their growth nature and the way they facilitate the establishments of new businesses. Within these economies, India, China, Thailand, Malaysia, Japan and many other countries are included – the essence of these countries is that they promote overall development in terms of more and more investments from domestic as well as foreign investors for the improvement in their gross domestic product and standard of living. All of these countries have their own core strengths to attract investors, for China it is their abundant & cheap labour resource, for India it is the quality of available talent that has created a mark in the global space in the software, services industries. India possesses one of the greatest potential – the Democratic government that formulates various policies to benefit the common people of the country. To improve the livelihood, provide better facilities for the citizens the GOI is always committed to invest more and more. Therefore all these factors have actually made India a place full of opportunities not only in the services sector but also in the manufacturing domain. As more private and government funded institutes are coming up with better facilities for learning and development in the both professional and personal fields, students are getting the feel of the corporate world and the criticalities involved therein.

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Indian economy has been the major centre of attraction for all of the developed nations. More and more MNCs are looking forward to build a long term comprehensive and sustainable relationship with Indian companies to enter the lucrative Indian market. FDI has been one of the major sources of investments in the sunrise industries as well as core industries that need a revamp in terms of innovative practices and management policies. The proportion of FDI and economic growth are positively correlated and combination of both is actually driving the overall GDP of the country. India is poised to be one of the biggest economies, thus it needs more and more collaboration with global organizations that would lead towards more employment that can actually move up the consumption pattern of the citizens to sustain growth trajectory even in time of economic recession. Whether India possesses any geographical locational advantages or not, or whether MNCs believe that owning the establishments in any foreign location would help them grab the market more quickly – these are few issues which would be analyzed in detail.