Assessment of MNCs in the Indian economy MNCs hold a crucial position in the Indian economy as they largely contribute to growth, employment, and technological up-gradation. MNCs have a sharp hike and invested in many sectors like IT and manufacturing etc. after the economic liberalization during 1991. They are responsible for the flow of foreign direct investment (FDI) that supports capital formation and infrastructure development. International corporations also bring in new technology and management techniques, improving productivity and competitiveness. They also generate jobs directly and indirectly and add to skill creation. But their effects are not challenge-free, including fears of job loss and the necessity for strong regulatory structures to safeguard fair operations. At a broader level, Indian companies are now part of the global economy and MNCs help harness these opportunities within India.