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Internationalization of Indian enterprises: patterns, determinants and policy issues

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  • Prema-chandra Athukorala
  • C. Veeramani

Abstract

This paper examines the emerging patterns and economic implications of Indian overseas direct investment (ODI) from a historical perspective. The novelty of the analysis lies in its specific focus on the implications of the liberalization reforms initiated in the early 1990s and the resultant changes in the overall investment climate for the internationalisation of domestic companies. The findings cast doubts on the popular perception that the recent surge in ODI from India is an unmixed economic blessing, a sign of 'coming of age' of the Indian companies in global business. Given the remaining distortion in the domestic investment climate, the net national gains from these investments could be much less than what the reported absolute numbers suggest.

Suggested Citation

  • Prema-chandra Athukorala & C. Veeramani, 2016. "Internationalization of Indian enterprises: patterns, determinants and policy issues," Departmental Working Papers 2016-04, The Australian National University, Arndt-Corden Department of Economics.
    • Handle: RePEc:pas:papers:2016-04
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    File URL: https://acde.crawford.anu.edu.au/sites/default/files/publication/acde_crawford_anu_edu_au/2016-05/2016-04_athukorala_verramani_internationalization_wp.pdf
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    Cited by:

    1. Prema-chandra Athukorala & C. Veeramani, 2019. "From Import Substitution to Integration into Global Production Networks: The Case of the Indian Automobile Industry," Asian Development Review, MIT Press, vol. 36(2), pages 72-99, September.
    2. I. Shovkun, 2019. "Investment climate as a factor of industrial development in Ukraine," Economy and Forecasting, Valeriy Heyets, issue 4, pages 70-103.
    3. Tamas Gerocs, 2017. "Internationalization of Indian multinational enterprises - motivations, strategies and regulation from the experience of Indian investments - a focus on Europe," IWE Working Papers 234, Institute for World Economics - Centre for Economic and Regional Studies.
    4. Katalin Völgyi & Eszter Lukács, 2021. "Chinese and Indian FDI in Hungary and the role of Eastern Opening policy," Asia Europe Journal, Springer, vol. 19(2), pages 167-187, June.

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    More about this item

    Keywords

    India; overseas direct investment; foreign direct investment; multinational enterprise;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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