Many multinationals believe in India’s longer-term consumption growth, reflecting sustained interest
Unilever’s announcement to purchase an additional 22.5% stake in its Indian subsidiary for US$ 5.4 billion is indicative of the faith that many MNCs have in India’s longer-term growth potential (see list below for other such investments)
- “We are going to be continuing to export more and more vehicles from India because India is so competitive and the vehicles here are so representative of the vehicles that people want around the world.”
-Ford Chief Executive, Alan Mulally
- “India is growing like most other developing countries where there are a lot of opportunities in consumer electronics and appliances. Our philosophy has been to not simply import products from other countries, because items should be specially customized for Indian consumers, keeping local needs in mind.”
-Panasonic President, Kazuhiro Tsuga
Consumer and Retail Industry
The majority of interest from MNCs in India has been in sectors that are associated with private consumption, which accounts for about 60% of GDP, as this segment is expected to grow strongly with the rise of the middle class and growing labor force
Automobile and Electronics
Several firms in the automobile and electronics sectors have invested in increasing their capacity despite experiencing a slowdown in sales, demonstrating their belief that the current conditions are unlikely to persist much longer
Speak Your Mind