Why MNCs have increased their investment in India over the past 15 years?
- MNCs have increased their investments in India over the past 15 years, because investing in India has been advantageous for them.
- Investing in industries such as cell phones, automobiles, electronics, soft drinks, fast food or services such as banking in urban centers have seen the profits of the MNCs booming.
- Besides, easy availability of cheap labour and cheap raw materials in the country has only added to the profit margins of the MNCs.
- Post 1991, the government lifted the trade barriers and adopted a far more liberal approach towards foreign investment and foreign trade than before. This resulted in a conducive environment for the MNCs to sets up their plants in India.