MNCs Struggle to Adapt Business Models to India's Distinct Market

MNCs have failed to realize their potential in India by simply imposing Western business models rather than adapting to the local market. This has limited their market share and profits.

India has a large economy of modest-income consumers which requires different business economics than Western developed markets centered on smaller high-income populations.

MNCs are reluctant to relax profit margins, innovate for the Indian consumer, and launch a diverse portfolio of products to unlock India's potential.

More MNCs are structuring an "One India" organization rather than a matrix structure to bring scale, innovation and address the Indian market.

MNCs are looking at India for a combination of benefits - domestic growth, global hubs for efficiency and costs, distributed R&D and access to talent - but strategy and priorities still reflect global not local needs.