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Outward expansion by Indian firms: the European route

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  • Christian Milelli

Abstract

This contribution attempts to shed light on the surge of direct investment flows from India because of the limited understanding of this huge country in the context of liberalization of inward and outward foreign direct investment. As far as the latter is concerned, India cannot be described as an underdeveloped country since it can mobilize substantial native capital and it hosts flourishing multinational companies. The liberalization of the national economy in the early 1990s and the resulting arrival of large foreign multinationals have prompted domestic companies to engage in a restructuring path along with to seek new business opportunities overseas in order to expand market share. If the bulk of Indian outward direct investment is still directed toward developing countries, mature economies are emerging as a growing host place. The paper focuses on Europe and draws on a wide range of data from various sources, and tackles the question empirically in order to provide a more comprehensive understanding on entry modes and strategies followed by Indian investors.

Suggested Citation

  • Christian Milelli, 2007. "Outward expansion by Indian firms: the European route," EconomiX Working Papers 2007-25, University of Paris Nanterre, EconomiX.
    • Handle: RePEc:drm:wpaper:2007-25
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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