If you want the answer in "YES" or "NO" then the answer is "YES". But if you need an explanation it is down here.
First, what is meant by a foreign network marketing company?
A foreign network marketing or direct selling company is a multinational company which operates in more than one country.
When India faced an economic crisis in 1991, the Indian government makes some economic reforms to lift out of the crisis. That time India openly opted for economic liberalisation and this allowed private investments. (that means open the doors for MNC's to operate)
Many economists of that time expressed fears over allowing foreign companies to operate in India. But with time everyone understands MNC's play a vital role in our economy.
How foreign network marketing companies contribute to Indian economic growth?
1. Governments have so many responsibilities such as alleviating poverty, providing social security and to develop the nation financially etc. But with limited funds, it has to prioritise the things to do. In the process, it is very difficult for governments of developing countries to invest in economic development.
These companies help governments in this case and bring a lot of foreign investment which paves the way for the economic development of the country. Like Amway's sunrise project, Avon's breast cancer crusade and more corporate social responsibility part of these companies helping our nation.
2. As we all know, unemployment is a serious problem in India. These companies build production units, provide work opportunities and help to solve this issue.
[Example - Amway established their manufacturing plant at Nilakottai in the Dindigul district of Tamil Nadu. They invested $100 million dollars (equivalent to INR 600 Crore) for building this. According to IndustryWeek, This plants creates 1500 direct and indirect work opportunities. Also, they tied-up with Indian farmers for organic farming. And this also creates a big positive impact. Here's the video of Organic farming tie-up with Indian farmers.]
Moreover, they provide the opportunity to work as a direct seller. And you can expand your business globally. But make sure you're with the right network marketing company.
Recommended Read: How to choose the right network marketing company.
3. Government also earn from the taxes paid by these companies. There are mainly two types of taxes filled by foreign network marketing or direct selling companies. One is GST(Goods and Service Tax) and another is Customs duty.
Customs duty is a kind of indirect tax that is imposed on both exported and imported goods and services. The tax imposed on the import of goods is known as the import duty.4. These foreign companies make good products with their advance technology and make the standard high. Which forces local direct selling companies to upgrade and provide good service and value.
5. Good foreign network marketing companies like Amway, Herbalife, Avon etc. are improving the status of India in the international community.
Conclusion:
Many foreign network marketing companies are playing an important role in contributing to our economy. But our government has to be cautious about the companies whose only motive is to capture the domestic market. (especially companies which are influenced by China government)
Useful Resources:
How to choose the Right Network Marketing Company? <== Must Read if you are thinking about joining any Network Marketing company.
http://www.mca.gov.in/mcafoportal/viewCompanyMasterData.do <== Check master data of any company registered with the Indian Government.
Role of Multinational Companies in India - Research Paper => Download
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