Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
4) Examine the impact of liberalisation on Indian companies, to what extent are they competing successfully with the MNCs? Discuss.(250 words)
Indian economy by Dutta and Sundaram
Why this question:
Key demand of the question:
The question is about analysing the impact of liberalisation specifically on the Indian companies and in what way they are competing the MNCs satisfactorily.
Examine – When asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
Begin with brief introduction on what you understand by liberalization.
Discussion should include the following:
First explain the effects of liberalization in general and then explain how it impacted the Indian companies and in what way is the impact different from that on the MNCs
Explain that Foreign direct investment (FDI) in India is a major monetary source for economic development in India. Foreign companies invest directly in fast growing private Indian businesses to take benefits of cheaper wages and changing business environment of India.
Then discuss in what way it is helping the Indian companies to compete with other MNC’s successfully, what are the challenges associated etc.
Conclude with way forward.