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Outward Foreign Direct Investment from India: An Analytical Overview of Trends and Patterns

Vol 7 , Issue 1 , January - June 2020 | Pages: 117-144 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Divya Nandrajog, Research Scholar, Department of Commerce, University of Delhi, Delhi, India (

The path of internationalization followed by emerging economies such as India in expanding its footprints in the global market has drawn the attention of academicians, researchers and policymakers. As the presence of emerging MNEs is expanding in the international market, it becomes important to study the internationalization path adopted by these countries as new investment theories could be envisaged based on the pattern of outward investment displayed by emerging economies. Therefore, the present paper is an analytical study of trends and patterns of Indian offshore investment over a period of time. It concludes that there is a rapid expansion in the outflow of foreign investment from India but its share in global OFDI remains negligible. India invests a considerable amount in tax havens and developed economies via wholly-owned subsidiaries. The Indian services sector, primarily firms engaged in financial services, insurance and real estate, contributes the maximum share in outward foreign direct investment. The study also identifies areas for future research and suggests scholars to explore the factors affecting offshore investment from the services sector and the impact of OFDI on the domestic performance of Indian MNEs engaged in services.


Outward FDI; Indian MNEs; Joint venture; Wholly owned subsidiaries; Sectoral analysis; Services sector

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