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Evolution and Pattern of Indian Outward FDI in ASEAN Region

Vol 7 , Issue 2 , July - December 2020 | Pages: 135-160 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. Jaya Prakash Pradhan, Associate Professor, Centre for Studies in Economics & Planning, Central University of Gujarat, Gandhinagar, Gujarat, India (
2. * Tareef Husain, Assistant Professor, Economics, Galgotias University, Gautam Buddh Nagar, Uttar Pradesh, India (
3. Ravinder Nath, Research Scholar, Centre for Studies in Economics & Planning, Central University of Gujarat, Gandhinagar, Gujarat, India (

This study focuses on the evolution of Indian outward foreign direct investment (OFDI) flows into the Association of South-East Asian Nations (ASEAN) region since 1980. It describes the changing nature of ASEAN focused Indian OFDI and infers about the causes behind such changes over different periods. It highlights sectoral composition, ownership structure, firm size, and acquisitions that most visibly characterise patterns of investments undertaken by Indian firms in ASEAN region. It also briefly discusses the development impact of Indian FDI in ASEAN. Indian OFDI in ASEAN region has been found to be concentrated in Singapore followed by Malaysia and others. The major sectors in which investment is being done in ASEAN region include services like transport, storage and communication, financial, insurance, real estate and business services while in manufacturing sector most of the investment is in the transport and motor vehicle equipment. The main motivations of Indian firms might be to improve the market strength or to seek assets, business strategies and resources in ASEAN countries.   


Outward FDI; Multinational enterprise (MNE); India; ASEAN.

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