Outward Foreign Direct Investment from India

Abstract

This paper examines emerging patterns and economic implications of Indian foreign direct investment against the backdrop of the evolving role of developing country firms (emerging multinational enterprises) as an important force of economic globalization. The novelty of the analysis lies in its specific focus on the implications of changes in trade and investment policy regimes and the overall investment climate for internationalization of domestic companies and the nature of their global operations. The findings cast doubt on the popular perception of the recent surge in outward foreign direct investment from India as an unmixed economic blessing, given the remaining distortion in the domestic investment climate.