Multinational companies in India

Abstract

This article presents the changes in the government policy concerning multinational companies (MNCs) since liberalisation in 1991. It also presents an overview of the structure of MNCs in India and the attitude and apprehensions of domestic businesses concerning MNCs. Issues relating to employment, wages, working conditions, unionisation, collective bargaining, industrial relations, social security, human resource development and the perceptions of the social partners concerning ILO declaration on social policy and code of conduct in respect of MNCs in India have been discussed. The paper concludes with the assertion that India has opened up its economy with far less discrimination than most other countries, including the Far East and South East Asian economies at their commensurate state of development. It was observed that MNCs have grown in India and Indian businesses are also growing into MNCs. The practices of MNCs cannot be considered unique as some of the domestic private businesses also were seen to be pursuing the same.