The process of global integration has intensified the technology-based competition in world markets during the 1990s. In this new environment, many developing countries are increasingly relying upon multinational enterprises (MNEs) for upgrading their international competitiveness and promoting their dynamic comparative advantage. This
paper attempts to analyse the export-enhancing role of MNEs in the Indian manufacturing sector during the 1990s.
The analysis in the study for the 1990s provides a relatively weak support to the hypothesis that MNE affiliates perform distinctly better than their local counterparts in the export markets in a globalised economy. The analysis also indicates that MNE affiliates perform no better than their local counterparts even in high-tech industries. India appears to have failed in attracting efficiency-seeking FDI on a significant scale, particularly in high-tech industries. R&D and efficiency of manpower emerge as two significant determinants of international competitiveness in technology-based sectors (high and medium-high tech sectors).