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India 11th favourite for setting up MNC headquarters

India hosts about 158 large global companies having a revenue of $1 billion or more, making the country the 11 most favoured destination for setting up of a multinational corporation headquarters, says a report.
According to an analysis by McKinsey Global Institute, as many as 158 global large companies have their headquarters in India with a combined revenue of $898 billion.

The US topped the chart with 2,123 large firms having their headquarters in the country with a combined revenue of $15,221 billion, followed by Japan (1,028 firms, $7,347 billion), China (577, $5,449 billion), Germany (462,$3,788 billion) and United Kingdom (358, $2,818 billion), constituting the top five.

The top 10 most favoured destinations for setting up an headquarters of a global MNC include: France which hosts 236 firms’s headoffice, Australia (203), Canada (194), Italy (179) and Russia (165). India was ranked 11th in the list followed by South Africa, Switzerland, Taiwan and Brazil.

At present, there are some 8,000 distinct large companies worldwide with revenue of $1 billion or more, and three out of four are based in developed regions, Mckinsey said.

This situation is likely to undergo a sea-change as by the year 2025, an additional 7,000 companies would grow to this size (revenue of over $1 billion) and seven out of ten of these new entrants are likely to be based in emerging regions, the Mckinsey report added.

Currently, the US, Canada, and Western Europe account for 11 per cent of the world’s population but are home to over 50 per cent of large company headquarters.

In comparison, South Asia is home to 23 per cent of the world’s population but only 2 per cent of the world’s large companies’ headquarters.
As per the report, by 2025, nearly half of the Fortune global 500 companies are likely to be based in developing countries including India.
‘As Japanese and South Korean companies became formidable global competitors in the past half century, new players from emerging markets such as Chinese telecom networking giant Huawei, Brazilian aircraft manufacturer Embraer and India’s industrial conglomerate Aditya Birla Group are asserting their presence,’ it said adding ‘many more are soon to follow’.

According to the report, companies from emerging regions are growing faster than their counterparts from the developed world not only on their home turf but also in overseas markets. It cited the example of the aggressive expansion of India’s Tata Motors into Europe in the
past decade.
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