Multinational Enterprises in India Industrial Distribution

In India, the affiliates of multinationals (MNEs) dominate whole sectors of industry--such as plastics and pharmaceuticals--characterized by a high degree of product differentiation, complex technology, and high-skill intensity. This dominance, combined with intangible assets, centralized decision-making, and a global outlook, leads to a divergence of approach between multinationals and their local counterparts in host developing countries. Nagesh Kumar analyzes the interindustry pattern of MNEs in India within the framework of the internationalization theory, also examining the comparative behavior of MNE affiliates in terms of conduct and performance.

Multinational enterprises play a vital role in the economic activity of most developing countries. In India MNE affiliates dominate whole sectors of industry - such as plastics and pharmaceuticals - characterised by a high degree of product differentiation, complex technology and high skill intensity. Such advantages, combined with intangible assets, centralised decision making and global outlook lead to a divergence of approach between MNEs and their local counterparts in host developing countries.This book analyses the inter-industry pattern of MNEs in India in the framework of the internationalisation theory, also examining the comparative behaviour of MNE affiliates and LCEs in terms of conduct and performance. The book goes further to explain the different performance of these two strategic groups by assessing profit and export.

1 Introduction 2. Policy of the Government of India Towards Foreign Investment 3. Place of Multinational or Foreign Enterprises in Indian Industry: Overall and Sectoral Shares 4. Determinants of Inter-Industry Distribution of Foreign Shares in Indian Manufacturing: A Test of the Internationalisation Theory 5. Foreign and Local Enterprises in Indian Manufacturing: An Analysis of Discriminating Characteristics 6. Determinants of Profitability of Foreign and Local Firms in Indian Manufacturing 7. Export Behaviour of Foreign and Local Firms in Indian Manufacturing 8. Summary and Conclusions