📄 Abstract
This study evaluates the post-1991 growth trajectory, policy drivers, and economic performance of Multinational Corporations (MNCs) operating in India. Following the transition from the restrictive Foreign Exchange Regulation Act (FERA) to the liberalized Foreign Exchange Management Act (FEMA) under the 1991 Liberalization, Privatization, and Globalization (LPG) reforms, foreign equity participation experienced exponential growth across key sectors, including Information Technology, Automobiles, Fast-Moving Consumer Goods (FMCG), and Pharmaceuticals. Drawing on macroeconomic indicators, cumulative Foreign Direct Investment (FDI) data from the Department for Promotion of Industry and Internal Trade (DPIIT), and financial disclosures of top-listed MNC subsidiaries, this paper analyzes both market penetration strategies and operational performance. The findings indicate that MNC subsidiaries in India deliver superior capital efficiency, maintaining a median Return on Capital Employed (ROCE) exceeding 28% and commanding elevated valuation multiples relative to their global parent companies. Beyond direct financial returns, multinational expansion has generated substantial socio-economic spillovers through local vendor development, technology transfer, and the establishment of high-value Global Capability Centers (GCCs). The study concludes that the relationship between foreign MNCs and the Indian economy has evolved into a strategic partnership, positioning India as a global manufacturing, R&D, and innovation hub.
🏷️ Keywords
📚 How to Cite:
Dr.Yashoda.R , GROWTH AND PERFORMANCE OF MULTINATIONAL CORPORATIONS IN INDIA , Volume 13 , Issue 7, July 2026, EPRA International Journal of Economics, Business and Management Studies (EBMS) , Pages: 268 - 273 ,