A STUDY ON THE IMPACT OF CRIPPLING CHINESE ECONOMY ON MULTINATIONAL CORPORATIONS: INDIA’S FDI APPROACH

Abstract

This project explores the multifaceted impact of a crippling Chinese economy on Multinational Corporations (MNCs) and examines their strategic responses. As disruptions in China ripple through supply chains, reshaping market dynamics, and introducing regulatory ambiguities, MNCs must skillfully navigate these challenges to uphold resilience and pursue sustained growth. Concurrently, India also emerges as a potential alternative for MNCs seeking stability and growth opportunities beyond China. This research paper delves into understanding the factors of Chinas economic growth over years, the cause for the downfall, and strategic measures that India can adopt to harness the potential inflow of FDI amidst the evolving global economic landscape, such as policy reforms, infrastructure development, and sector-specific incentives. The analysis section examines the major factors that determine the economy such as GDP growth rate, Population, FDI, Youth unemployment rate, GDP Per capita income and forecast of Indias momentum in FY25 based on secondary data. The conclusion emphasizes the central theme of harnessing Indias vast growth potential while confronting the key challenges that impede its expansion. By implementing strategic policies and precise reforms, India can sustain its robust growth trajectory, surpassing the $5 trillion threshold. KEYWORDS: Economic Landscape, Crippling Chinese economy, Indias measures, Multinational Corporations (MNCs), FDI, Sustained growth, Strategic policies, Challenges.