Although India has several handicaps, there are also a number of favourable factors for globalization of Indian Business.
(1) Human Resources:-
In India, there is abundant supply of labour and cheap labour has particular attraction for several industries.
(2) Wide Base:-
India has a very broad resources and industrial base which can support a variety of business.
(3) Growing Enterpreneurship:-
Many of the established industries are planning to go international in a big way. Added to this is the considerable growth of new and dynamic entrepreneurs who could make a significant contribution to the globalization of India business.
(4) Growing Domestic Market:-
The growing domestic market enables the Indian companies to consolidate their position and to gain more strength to make foray into the foreign market or to expand their foreign business.
(5) Expanding Markets :-
The growing population and disposable income and the resultant expanding internal market provides enormous business opportunities.
(6) NRI’s :-
The large number of non-resident Indians who ave resourceful in terms of capital, skill, experience, ideas etc. is an asset which can contribute to the globalization of Indian business. The contribution of the overseas Chinese to the recent impressive industrial development of china may not be noted here.
(7) Economic liberalization :-
in India is an encouraging factor of globalization. The delicensing of industries, removal of restrictions on growth, opening up of industries earlier reserved for the public sector, import liberalizations, etc. could courage globalization of Indian business . Further liberalization in other countries increases the foreign business opportunities for Indian business.
The growing competition, both from with the country and abread, provide many Indian Companies to look to foreign markets seriously to improve their competitiveness position & to increases the business.
Role of MNC’s
According to an ILO repot, “the essential nature of multinational enterprises lies in the fact that its managerial headquarters are located in one country (home country) while enterprises carries out operations in number of other countries as well. (host countries).