Niti Aayog is exploring ways to make more Indian MNCs2 min read . Updated: 26 Nov 2018, 11:43 PM IST
The government is working to further improve the ease of doing business in India, says Niti Aayog vice chairman Rajiv Kumar
New Delhi: Niti Aayog is exploring ways to encourage more domestic companies to be among the top multinational corporations in the world, the think-tank’s vice chairman Rajiv Kumar has said. The government is working to further improve the ease of doing business in the country, Kumar said, evean as Niti Aayog tries to figure out impediments for an Indian company in achieving global size.
The government think-tank has already held preliminary meetings with the industry bodies and top industrialists to identify the roadblocks that are hindering growth of Indian companies.
“We have noticed that China and some other emerging economies like Turkey, Argentina and Brazil, all of them have been able to establish companies, which are MNCs in their own right and have a significant share of the sectors in which they operate. You can see this is true of the companies like Alibaba, Temasek or Baidu, being able to compete with largest companies in the world," Kumar said.
In the latest Fortune 500 list of the world’s biggest corporations in terms of revenue released this year, only seven Indian companies made it to the ranking.
Indian Oil Corp. Ltd was ranked 137th, Mukesh Ambani-led Reliance Industries Ltd ranked 148th, Oil and Natural Gas Corp. Ltd (ONGC) ranked 197th and State Bank of India (SBI) was given came in at 216.
US-based retail giant Walmart Inc. topped the global rankings, followed by State Grid Corporation of China, and China National Petroleum. The US continues to have the largest presence on the elite list with 132 firms, followed by China at 109.
“The Indian companies should also figure prominently in the list of top global MNCs," the Niti Aayog vice chairman said, adding this is not a tall order given the fact that India, in quick time, has been able to significantly improve in World Bank’s ease of doing business rankings.
According to Kumar, the future of any economy is often dependent on the strength and nature of their large corporations. He emphasised that India’s large and growing economy should give a strong base for our companies to improve scale and become global.
“So, given that positive factor, also that some of our entrepreneurs are also very capable in running companies abroad. We need to identify factors which are preventing them from becoming global players, and also to identify some of the drivers which have enabled companies in other countries to be able to do so," Kumar said.