There are many reasons for the growth of MNCs in India. Some of them are discussed below: 1. There is a huge market potentiality in every sector of the Indian economy. 2. India is a fast developing nation and ranked second among the developing nations of the world. 3. Indian labour is cheap compared to developed nations. 4. Realizing the need for foreign investment in India Government of India has taken many supportive policy decisions to attract all kinds of foreign investment including the investment from the MNCs.