The successful spread of Indian companies abroad – measured on the parameters of total revenue, assets and workforce – deserves cheers (“Indian MNCs get robust”, May 16). Since ours is a nation confronted with gross unemployment and uneven economic growth, the ramifications of this phenomenon are worth studying. One, a company invests in foreign lands when the domestic market is saturated or indigenous investment is beset with many constraints such as legal hurdles and populist pressures. If the subject companies sought distant pastures for the latter set of factors, it is a signal to the government to improve the playing field — more so when it is finding it difficult to rope in foreign investors on a long-term basis.
However, the contribution of Indian MNCs towards employment generation within India is adversely affected — particularly jobs for which talent is available in the country. Yet, it would be commercially unthinkable that Indian business expands here just to absorb the unemployed. It appears logical that our corporate houses go abroad when required markets, talent and technology do not exist India. Whether or not it is practical will depend on what the government does to eliminate the hurdles that compel Indian MNCs to explore the global scenario. Till then two cheers for them and none for the government.
Y G Chouksey, Pune
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