India was the earliest victim of multinationals and had the worst experience of them.A large number of dominant foreign corporation operate in India.They operate in diverse fields like tobacco,pharmaceuticals,toiletries,beverages,petrochemicals and manufacturing industries.Since the advanced countries had developed technology,the import of foreign capital and technology became essential for India to attain the take-off stage.However,multinationals do not appear to have been strong enough to exercise a dominant influence on Indian politics.
According to the Company Law Board,there were 740 foreign undertakings in 1972-73 with assets worth Rs.535 crores.All these operating in India could not be termed as MNC's,because many of them were small trading companies.The United Kingdom based companies had 460 undertakings,the U.S based had 116,the rest were Swiss,Japanese,West Germany and Swedish Companies.The number of foreign affiliates gradually declined with the Indianisation of some of these organisations.
The highest concentration of foreign units in India is in the manufacturing sector.The major part of foreign investment is in basic industrial chemicals,electrical goods,transport equipment,aluminium,pharmaceuticals and rubber goods.For a long time in India,the petroleum industry was completely under foreign control.However,those companies viz,Burmah-Shell,Esso,Caltex were taken over and their domination was broken.But foreign domination is still found in cosmetics,pharmaceuticals,rubber goods,paints,cigarettes,food-stuffs and some sectors of engineering goods.
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