"Indias 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 SMEs provide job opportunity to more than 65 million people  Internationally SMEs report 98% of business Statics


YEAR
1960 1966

INVESTMENT LIMITS Upto Rs 5 lacs in Plant & Machinery Upto Rs 7.5 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

SME SECTOR SIGNIFICANCE IN INDIAN CONTEXT

 

SMEs are generally less capital-intensive and more labour-intensive. Are best suited for countries like India, 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, which would otherwise remain unutilized, particularly in rural and backward areas. India has already established a niche in SME Development Strategy and providing excellent support in product development, R&D, financial instruments, Infra-structure, marketing and export development Consequently, India is fast emerging as a global hub for labour-intensive manufacturing and knowledge-oriented businesses.

  

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

INHERENT ADVANTAGE OF S.S.I

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


SMEs 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 SMES HAVE GROWN

Operational Flexibility  Significant Export earnings  Technology-oriented industries  Location wise mobility  Contribution towards defense production  Import Substitution ect


WHAT ARE MNCS



MNCs are huge industrial organizations which extend their industrial and marketing operations through a network of their branches or their Majority Owned Foreign Affiliates. 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. MNCs are also know as Transnational Corporation (TNCs) or multinational enterprise (MNE) or multinational organization (MNO).

1st MNC in world

1st MNC In India

1st Indian MNCs

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

NEED FOR MNC

Sustaining a high level of Investment. Technological gap. Exploitation of natural resources. Undertaking the initial risk. Development of basic economic infrastructure. 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:


 

Indias large market potentials India presents a remarkable business opportunity by virtue of its sheer size and growth Labor competiveness Indias vast population is increasing its purchasing power

TRENDS OF MNCS IN INDIA

 

First MNC in INDIA is EAST INDIA Co. 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. Also insurance companies like AIG and Max New York Life Insurance doing business in India.

TOP TEN BRANDS IN THE WORLD

IBM Microsoft LG Toyota Samsung Nokia Hyundai Fiat Nike Ford Sony

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. Promotes exports and reduce imports by raising domestic productions. 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.

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


BENIFITS OF MNCS
     

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

SUCCESS FACTORS OF MNCS IN INDIA



Commitment at global level

Raise the profile of India  Formulation of bold long term targets


Empowered local Management



More cost effective, 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

WHAT HAS INDIA GAINED?

 Working  Systems  Training

culture for employees

and Learning  Technology especially concept of working with better technologies  Safety Health and Environmental Learning  Culture and Ethos  Excellent training grounds for many entrepreneurs  R&D Outsourcing Pharmaceuticals, Engineering, IT, Telecom  Product development centers (Telecom, IT)

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

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


SOURCE OF INFO
http://exim.indiamart.com/ssicorner/performance.html www.google.com www.wikipedia.com