30 May 2012

Multi National Companies Involved in Trade

As on 10th May, 2012, there were 3196 foreign companies as defined under section 591 of the Companies Act, 1956. Currently, the Foreign Direct Investment is prohibited in the Retail Trading (except single brand product retailing). Lottery Business including Government/private lottery, online lotteries, etc; Gambling and Betting including casinos etc; Business of chit fund; Nidhi Company; Trading in Transferable Development Rights (TDRs), Real Estate Business or Construction of Farm Houses; Manufacturing of Cigars, Cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes. Activities/sectors not opened to private sector investment including Atomic Energy and Railway Transport (other than Mass Rapid Transport Systems), Foreign technology collaboration in any form including licensing or franchise, trade mark, brand name, management contract is also prohibited for Lottery Business and Gambling and Betting Activities. 

The year-wise number of small, medium and cottage industries that have closed so far since entry of Multi-national Companies is not available. However, the total number of closed Micro, Small, Medium Enterprises (MSME), as per the latest Census of Registered MSME Sector, i.e. 4th All India Census of Registered MSMEs with reference year 2006-07, stands at 4.96 lakh. However, there are several reasons for closure of an enterprise ranging from problems of credit, marketing, raw materials and competition. 

This information was given by the Minister of State for Commerce and Industry, Shri Jyotiraditya M. Scindia in a written reply in the Rajya Sabha 

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