India is expected to produce the most new multinational companies, overtaking China as the emerging world's largest source of new multinationals
India may overtake China as the largest source of new multinational companies (MNCs) from the emerging markets, with over 2,200 domestic firms forecast to open overseas operations over the next 15 years, says a PricewaterhouseCoopers report.
According to the report titled ‘Emerging Multinationals’, the competitive landscape is set to be transformed over the next decade as Indian and Chinese multinationals lead the way in seeking new markets outside their home markets, reports PTI.
“India is expected to produce the most new multinational companies, overtaking China as the emerging world’s largest source of new multinationals. Over 2,200 domestic companies are projected to open operations outside over the next 15 years (between 2010 and 2024),” the report says.
Driven by the rapid pace of globalisation and revolution in information and communications technologies, the number of companies from the emerging markets choosing to set up operations abroad has increased in the past five years.
The report suggests 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.
“It is encouraging to know that India will replace China as the largest source of new MNCs in the emerging world from 2018 onwards. The key drivers for this are the relative increase in both investment intensity as well as openness that the domestic economy offers,” PwC India leader for markets and industries Jairaj Purandare said.
India and China would also be joined by an array of companies from Singapore, Russia, Malaysia and South Korea in terms of setting up MNCs.
According to the report, some of these new MNCs would become international powerhouses and would require services all over the world; for example, to support their IT and telecom networks.
The PwC report says more and more new MNCs are moving straight into the developed economies as opposed to setting up their first foreign operation in a neighbouring emerging market.
The global consultancy major used econometric techniques to project the number of new multinationals arising from a sample of 15 emerging economies over the next 15 years.
The countries analysed are Argentina, Brazil, Chile, China, Hungary, India, Malaysia, Mexico, Poland, Romania, Russia, Singapore, South Korea, Ukraine and Vietnam.
Courts have imposed penalty to the tune of Rs63.84 lakh for non-filing of these documents by these companies in the year 2008-09
Over 3.7 lakh companies have not filed annual returns and balance sheets, which is mandatory under the Companies Act, for the fiscal year 2008-09, Parliament was informed today, reports PTI.
While the annual returns and balance sheets for the year 2009-10 are not yet due for filing, there are 3,70,196 companies which have not filed balance sheets, and 3,71,110 companies which have not filed their annual returns, corporate affairs minister Salman Khurshid said in the Lok Sabha.
In a written reply in the House, he said that the courts have imposed penalty to the tune of
Rs63.84 lakh for non-filing of these documents by the companies in the year 2008-09.
The balance sheets and annual returns are required to be filed with the Registrar of Companies (RoC) by all the companies registered under the Companies Act, 1956, he said.
Similarly, for the fiscal ended 2007-08, over 3.03 lakh companies have not filed their balance sheets, while more than 3.07 lakh companies have not filed their annual returns.
The penalties imposed by the courts for non-filing of these documents by the companies during 2007-08 stood at Rs88.17 lakh, Mr Khurshid added.
Similarly for fiscal 2006-07, over 2.60 lakh companies have not filed returns and accounts and the courts have imposed a penalty of Rs94.66 lakh.
The domestic footwear industry, the second-largest in the world after China, is growing at a rate of about 10% annually
With global economies recovering from the slowdown, India’s footwear exports are expected to more than double to $3.37 billion (about Rs14, 828 crore) in the next two years.
The Indian footwear industry, the second-largest in the world after China, is growing at a rate of about 10% annually, president of the Indian Footwear Components Manufacturers Association BD Bhaiya told reporters.
“Apart from the growth in the domestic sector, we have also set a target of $3.37 billion in exports of footwear alone by 2013-14,” Mr Bhaiya said.
In 2008-09, footwear exports from India were $1.53 billion. Of the total exports of leather and leather products, the segment contributes over 40%.
Several international brands like Nike, Adidas and Reebok source footwear from the $5-billion domestic industry.
India currently produces about 2.06 billion pairs of shoes in different categories. Per capita consumption of footwear in the country has also increased to two pairs from a mere 0.5 pairs a decade ago.
“With the quality and price competitiveness that has been proved, I am confident that India will fast become a major player in the global footwear market, as more and more companies are shifting their sourcing needs as well as production bases towards us,” Mr Bhaiya said.
The country’s major export markets are the US and Europe. India allows 100% foreign direct investment in the sector.
Companies like Formas Kunz (Brazil), Feng Tay Enterprises (Taiwan) and Apache Footwear (China) have set up production basis in India, Mr Bhaiya said.
The industry is organising a three-day Footwear, Materials, Manufacturing and Technology Fair in Greater Noida from 7th May to attract global players.