According to a new report titled 'Emerging multinationals: The rise of new multinational companies' from emerging economies from PricewaterhouseCoopers (PwC), the global landscape is all set to undergo a major transformation. And - no surprises here - the key changes will be driven by Asian giants India and China followed by Singapore, Russia, Malaysia and South Korea.
The report says that India will produce 2219 new multinationals between 2010-2024. This is indeed an interesting development. One must also notice that while Indian MNCs are increasing their global footprints, a lot of foreign MNCs are setting up their shops here. My colleague Indrajeet Saoji (Our Business Head) who was in Munich for bauma 2010 last week said that he was amazed to see the growing interest of European and North American companies in India. "Right from the taxi driver in Germany to the CEOs of big firms, all are talking about India's growth story," he told me after coming back.
Going back to the PwC report, the number of companies from emerging markets choosing to set up operations abroad has increased in the last five years, in part due to the rapid pace of globalisation and the revolution in information and communications technologies.
The report suggests that this trend is expected to continue over the next 15 years, as new multinationals from emerging economies rise in prominence on the global economic stage. India is expected to produce the most new multinational companies, overtaking China as the emerging world’s largest source of new multinationals. Over 2200 Indian companies are projected to open operations outside the country over the next fifteen years. Jairaj Purandare, India Leader for Markets and Industries, PricewaterhouseCoopers said: “It is encouraging to know that India will replace China as the largest source of new multinationals in the emerging world from 2018 onwards. The key drivers for this are the relative increase in both investment intensity and openness that the Indian economy offers.” We are indeed fortunate to be witness to and participate in this growth story.
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