Difficulties faced by Indian firms in a global market

By on September 17, 2012

The following are the challenges encountered by Indian multinational enterprises in going global (Sreenivas, 2006):

Global economic slowdown

The global recession is affected by India. This is visible in layoffs increase in the export sector where the orders have reduced. Another necessary alteration is the difficulty of external financing findings on which Multinational corporations in India has become relied increasingly. Tata is devoted to view for sustaining ways in present acquisitions and Reliance Industries is used to view for some of its overseas investments (Gooderham and Nordhaug, 2008). For India and many other countries the economic slowdown is not such a catastrophe. First the Indian banking system seems to be in a good shape reasonably and due to strong internal market and semi-insulated rupee and the reduction in oil costs, the economy in India is predicted to develop around 6% during the year 2009. Secondly a global recession can develop the cost pressure across the world, which may offer several business opportunities for Indian multinational corporations.

Increasing competition

India has become a very necessary destination for several global firms and this is better for the overall efficiency of economy i.e. it denotes that the previous safe home market of Indian MNCs is contested.

Talent crunch

One outcome of the Indian economy expansion is the serious talents shortage. This may denote paradoxical in one of the biggest countries in the globe, but several sectors are representing difficulties in appointing what they require. Indian information technology firms are presently recruiting abroad such as in Philippines and Russia.

Global firms need global management

Presently there are few managers in India with experience of international management. There is no fast fix for this condition but there is a functioning management for international market. Presently the industry in India is so tough for managers according to local MNCs and it is costly and even more difficult to appoint an Indian manager to handle operations in India.


  • Sreenivas T (2006), “Perspectives Of Indian Agriculture Industry And Infrastructure”, Discovery Publishing, New Delhi, p 134.
  • Gooderham P N and Nordhaug O (2008), “International Management: cross boundary challenges”, Blackwell Publishing, USA, p 384.


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