The Rise Of Indian Multinationals

The contributors explore the rapid growth of Indian multinationals and provide valuable insights into the patterns and trends of their outward investments and the factors that led to their emergence in the global FDI market. They also look at their continuously evolving strategies in the global economy.

Multinational investment, since the beginning, has primarily been a phenomenon of the developed countries. Until about 2000, the geographical composition of multinational activity was highly concentrated in terms of both the recipient as well as the donor countries. However, with the turn of the century, developing countries started improving their shares both in inflows and in outflows of multinational investment. The book provides a comprehensive examination and analysis of multinational investment from emerging Asian countries with emphasis on Indian multinationals, and derives policy implications with respect to home country measures for developing countries. Existing theories of multinational investment are looked at, and the book manages to highlight what cannot be explained by the existing theories with respect to multinational investment from developing countries. It goes on to identify determinants of multinational investment from Asian developing countries, and the author presents an analysis of Indian multinationals in order to bring out distinctive characteristics and strategies of Asian multinationals.

The contributors explore the rapid growth of Indian multinationals and provide valuable insights into the patterns and trends of their outward investments and the factors that led to their emergence in the global FDI market. They also look at their continuously evolving strategies in the global economy.

Indian multinationals have been active in the world economy since early 1960s. However, their number and scale of operation have grown significantly in the last fifteen years or so. In the face of increasing global competition unleashed by extensive liberalization measures, Indian firms have adopted the strategy of outward foreign direct investment (OFDI) as an integral part of their business strategies. By undertaking greenfield OFDI and brownfield OFDI for acquiring foreign companies, Indian firms are enhancing their potential for growth and global competitiveness. Consequently India has emerged as a major developing source country of FDI and Indian multinationals are likely to affect world development in several ways. The book analyses the phenomenon of Indian multinationals from both macro level factors and firm-level corporate strategies and examines its implications for India and host countries. A detailed investigation of Indian overseas investment flows and stocks from sectoral, regional, ownership and motivational perspectives provides a rigorous long-run coverage of Indian multinational firms from 1970s onwards. The role of innovation, entrepreneurial skills, scale of business, productivity, and the role of government policies, received critical attention in explaining the emergence of Indian multinationals. The comprehensive quantitative and case studies approach offers valuable insights into the behaviour and impacts of these new global actors on home and host countries. This book offers a number of lessons to home country, host countries, and Indian enterprises becoming multinationals. With the growing global interest from policy makers, business practitioners, researchers, and students in Indian multinationals, this book would serve as an important and timely reading for all of them.

Indian firms have grown explosively over the last two decades since India adopted wholesale neo-liberal policies in 1991. Nayak attributes the expansion of these Indian firms and their multinational businesses to the owners' ability to manoeuvre and mould key agents in the external environment rather than to the internal management of the firm.

Exploring a very important and timely topic, India's Emerging Multinationals examines the rise of Indian multinationals in the context of India's growing prominence as a source of outward investment.Written by a well-respected authority in this field, this booknbsp;sets out the emerging trends and patterns in outward investments from India, characterizing the nature and sources of ownership advantages of Indian enterprises that have led to their expanding outward presence.nbsp;It discusses the enterprise development policies followed by the Indian authorities that facilitated the accumulation of capabilities and ownership advantages.The analysis is supported with quantitative data from over 4000 enterprises, and detailed case studies from key industries, including pharmaceuticals, IT and automobiles, highlight the emerging multinational corporations and trace the contours of their rise to global prominence. In addition, Kumar draws together the policy lessons that can be learnt from the Indian experience by other developing countries. This remarkable book gives a thorough analysis of the emerging profile of Indian multinational investment, a phenomenon of growing importance in contemporary economic affairs.

Germany has advanced to the position of a key destination for Indian multinational enterprises in their spirited pursuit of growth opportunities overseas. In 2008, Indian firms invested an estimated amount of US$ 1.8 billion in Germany while 16 acquisitions by Indian firms were monitored, up from 7 in 2007. In fact, Indian FDI stock in Germany seems to have surpassed German FDI stock in India. Our research shows that, as of October 2008, 123 Indian MNEs with 167 subsidiaries were active in Germany and had approx. 20,000 full-time employees on their pay-rolls. However, there has been hardly any independent, academic research, so far, on Indian investments in Germany, especially on the motives, experiences, and employment effects on the host and home economies. The present study, presumably the only empirical study of Indian firms overseas to date, provides unique insights into the motives, operations, experiences, and future plans of Indian firms. It shows that Indian firms have generally performed well and intend to further strengthen their operations, including in research & development activities, in Germany. Nonetheless, firms are also faced with several challenges, including but certainly not limited to cross-cultural issues, which need to be mastered. There are also sectoral differences in the motives, experiences, and location selection criteria of Indian MNEs.

Indian firms have grown explosively over the last two decades since India adopted wholesale neo-liberal policies in 1991. Nayak attributes the expansion of these Indian firms and their multinational businesses to the owners' ability to manoeuvre and mould key agents in the external environment rather than to the internal management of the firm.