ZENITH International Journal of Business Economics & Management Research
Year : 2012, Volume : 2, Issue : 6
First page : ( 49) Last page : ( 60)
Online ISSN : 2249-8826.

A study on the outward fdi from India

Baskaran S. Arockia*, Dr. Chaarlas L.J.**

*Assistant Professor, Department of Commerce, Loyola College, Chennai – 600034, Tamilnadu.

**Head, Department of Commerce, St. Joseph’s College, Tiruchirappalli -02, Tamilnadu.

Abstract

India has become an indispensable strategic global partner for both multinational corporations and to their home countries. The inward foreign direct investments and outward investments have reached a historic high in the recent years. Indian firms are now growing globally in order to service overseas markets. The increasing engagement of the Indian companies in the world markets is not only an indication of the maturity reached by Indian Industry but also the extent of their participation in the overall globalization process. In this context, this study pertains to outward FDI from India. the mounting competitiveness of Indian multinationals and their increasing desire to venture abroad to expand markets, operate near to clients and acquire technology and brand names are key drivers pushing more Indian firms to go abroad. Substantial improvements in the country’s economic performance and the competitiveness of its firms and their strategy, resulting from ongoing liberalisation in economic and outward FDI (OFDI) policies, made these developments possible. Hence, Government should support Indian firms in overseas expansion because such expansions will increase home country exports and provide parents firms’ cheaper raw material through backward FDI.

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Keywords

Foreign markets, Indian Multinationals and Outward FDI.

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