Most of the MNCs are concentrated in major metropolitan cities in India. Give reason for that. And also suggest measures to encourage MNCs to establish its base in tier 2 and tier 3 cities in order to promote regional balance.

Answer: A Multinational Company (MNCs) is a business organization whose operations are carried on in more than one country (other than the home country). They operate their business simultaneously in different countries of the world.

MNCs have been operating in India even prior to Independence, like Singer, Parry, Philips, etc. In the early 1990s, multinationals catered to the basic demands of the Indian consumer in fast-moving consumer goods (FMCG) and automobiles. As India’s economic liberalization played out, the demographics of successful MNCs shifted: new and diverse sectors such as technology and consumer durables became prominent. The New Industrial Policy ....