The threat that “MNC’s are paving way to neo-colonialism in India” where multinational companies could control the policies is not valid in present context. When East India Company came in 18th century, there was not one ruler in India and it was easy for British traders to capture small kingdoms first and whole of India at a later date. But today India is a sovereign democratic country. There are several laws to protect the interest of Indians and it is not possible for any multinational company to bypass these rules and start controlling India. If they bypass rules they will not be allowed to work in India. Another argument is that multinational companies start arm twisting after having strong presence in the country. But this is also a far-fetched drawn argument. The companies are there to do business and earn profit. Besides, it is not easy for any foreign business establishment to arm twist a sovereign government. This is the age of globalisation. It is impossible to remain cut off with the world and sustain in present scenario. From 1950 to 1991 India had a closed economy. Due to the license-permit raj, infant industry protection and import substitution Indian growth rate was very low. At that time the domestic industries had ample time and resources to prove themselves and turn into profitable companies. But nothing of that sort happened. Due to the lack of competition, the domestic industries exploited consumers. However after 1991 i.e., after liberalization of the Indian economy, the scenario has completely changed. Due to the increase in the Foreign Direct Interest, India is growing at a very high rate; the disposable income, the standard of living is up. They have boosted our economy.
The MNCs operating in India are major source of job creation. Lots of people lost their earnings when Coca Cola and IBM were asked to leave the country in late 1970’s. When Indian economy opened in 1990s number of multinational companies came to India. They both wanted to do business in India as well as to make India their production hub because of favourable conditions. This paved the way for more job opportunities. Today look at some of the cities of India whether it is Bengaluru, Gurgaon or Hyderabad, all major multinational information technology companies have opened office and giving jobs to lakhs of Indians.
Not only this, to stay in competition with multinational companies, domestic industry also pulled up its socks and some of the Indian companies are now giving tough competition to their foreign counterparts. Consumers are the kings now. They are getting best of the products.
The last but not the least of all points is, that after liberalisation, some Indian companies are operating in every continent of the world and have attained the status of a multinational. So my dear friends who are supporting the topic - would you agree that if multinational are paving way for neo colonialism in India, the Indian firms are doing the same in other countries too?
I think MNCs act as a window through which we can see the world. In the end I would like to conclude by saying that MNC’s are here with a good motive and let’s not look up to them as “devils in disguise.”
