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Enterprises direct from other countries and the Indian economy

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  1. Foreign control
  2. Globalization: restructuring the economy
    1. Pre-globalization period
    2. Seeds of globalization
    3. The big leap
  3. Studies on the structure and control in the corporate sector
  4. List of top internationally controlled companies operating in India
  5. The Indian economy
    1. India: The promise of growth
    2. External sector
    3. Mncs Happy Operating In India, 61% in black
  6. Sectoral overview
    1. Agriculture
    2. Manufacturing
    3. Services
  7. Policy regarding foreign investment
  8. Other relaxation's
  9. Findings

The notion of control implies the ability to direct an enterprise and determine its strategy. This ability can be exercised by an investor with a majority shareholding (more than 50%). The aggregate ?nationally-controlled enterprises? includes enterprises controlled by the reporting economy and enterprises under multiple minority ownership. The latter have two or more shareholders (foreign or of the reporting economy), each owning between 10% and 50% of the shares. It is important to bear in mind that the comparisons are made between enterprises of relatively small (nationally controlled)and much larger (foreign-controlled) average size and that there may be certain activities where the average size of an enterprise plays an important part in determining productivity, due to a minimum efficient scales of production. Furthermore, most foreign-controlled enterprises are believed to be owned by multinationals or groups, whereas this is less likely to be the case for nationally-controlled enterprises. High productivity rates may be attributable to the individual national economic framework; for example, low corporate tax rates could lead to a high level of transfer-pricing. The calculations presented in this Statistics in Focus should therefore be treated with caution.

[...] An assessment of the nature and extent of foreign control in the Indian economy necessitates a discussion on the concepts and definitions of what can be considered a foreign controlled enterprise. The need for such a discussion arises primarily because of the absence of any clear official definition of foreign capital in the country. One would normally presume that different administrative wings of the Government, like the Ministries of Company Affairs, Industrial Development and Finance, who administer various regulations, would not only have conceptual clarity but would also have evolved a legal framework to deal with different forms of foreign private capital including the Transnational Corporations (TNCs). [...]


[...] The potential of the sector is evident from existing and projected estimates: Presently the total asset size of the Indian banking sector is US$ 270 billion while the total deposits amount to US$ 220 billion in a banking network of over 66,000 branches across the country. The size of the insurance market with only 20 per cent of the insurable population currently insured, presents an immense opportunity to new players. Foreign insurance majors have entered the country in a big way and started joint ventures in both life and non-life areas. [...]


[...] Well before the Soviet Union crashed under the weight of such an unproductive monolith, the Indian economy went into a deep crisis ii) Seeds of Globalization Caught in a severe debt trap, and drained of foreign exchange by the two oil shocks (which quadrupled the price of oil imports), it was in 1981 that the government for the first time turned to the IMF for a bailout. On the eve of the IMF loan, India's total foreign debt was Rs 22,764 crores billion). [...]

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