Journal Press India®

Evolution and Pattern of Indian Outward FDI in ASEAN Region

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

 
Article has been added to the cart.View Cart (0)
https://doi.org/10.17492/jpi.focus.v7i2.722007


Author Details ( * ) denotes Corresponding author

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

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.   

Keywords

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

  1. ASEAN Secretariat and UNCTAD (2014). ASEAN Investment Report 201314: FDI Development and Regional Value Chains. Jakarta: ASEAN Secretariat.
  2. ASEAN Secretariat and UNCTAD (2017). ASEAN Investment Report 201617: FDI Development and Regional Value Chains. Jakarta: ASEAN Secretariat.
  3. De Beule, F., & Bulcke Van Den, D. (2012). Locational determinants of outward foreign direct investment: An analysis of Chinese and Indian greenfield investments. Transnational Corporations, 21(1), 1–34.
  4. Dunning, J. H. (1986). The investment development cycle and third world multinationals. In Khan (Ed.), Multinationals from the South (pp. 15-47.), New York: St. Martins Press.
  5. Kogut, B. (1988). Joint ventures: Theoretical and empirical perspectives. Strategic Management Journal, 9(4), 319–332.
  6. Luo, Y. (2002). Contract, cooperation, and performance in international joint ventures. Strategic Management Journal, 23(10), 903–919.
  7. Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asia Pacific Journal of Management, 23(1), 5–27.
  8. OECD (2013). Economic Outlook for Southeast Asia, China and India 2014: Beyond the middle-income trap. Paris: OECD Development Centre, Organisation for Economic Co-Operation and Development.
  9. Panagariya, A. (2004). Growth and reforms during 1980s and 1990s. Economic and Political Weekly, 39(25), 2581−2594.
  10. Pradhan, J. P. & Abraham, V. (2005). Overseas mergers and acquisitions by Indian enterprises: Patterns and motivations. Indian Journal of Economics, 85(33), 365386.
  11. Pradhan, J. P. & Sahoo, M. (2007). Outward foreign direct investment by small and medium-sized enterprises from India. In UNCTAD (Ed.), Global players from emerging markets: strengthening enterprise competitiveness through outward investment (pp. 67–80), New York and Geneva: United Nations.
  12. Pradhan, J. P. (2006a). Global competitiveness of Indian pharmaceutical industry: Trends and strategies. ISID Working Paper, No. WP2006/05, New Delhi: Institute for Studies in Industrial Development.
  13. Pradhan, J. P. (2006b). Quality of foreign direct investment, knowledge spillovers and host country productivity: A framework of analysis. ISID Working Paper, No. WP2006/11, 2006, New Delhi: Institute for Studies in Industrial Development.
  14. Pradhan, J. P. (2006c). Rise of service sector and outward foreign direct investment from Indian economy: Trends, patterns, and determinants. GITAM Journal of Management, 4(1), 70–97.
  15. Pradhan, J. P. (2008a). The evolution of Indian outward foreign direct investment: Changing trends and patterns. International Journal of Technology and Globalisation, 4(1), 70–86, 2008.
  16. Pradhan, J. P. (2008b). Rise of Indian outward FDI: What implications does it hold for host developing countries? Revista Economía: Teoría Y Práctica, 29(2), 9–49.
  17. Pradhan, J. P. (2011). Emerging multinationals: A comparison of Chinese and Indian outward FDI. International Journal of Institutions and Economies, 3(1), 113–148.
  18. Pradhan, J. P., & Das, K. (2016). Manufacturing exports from Indian states: Determinants and policy imperatives. New Delhi and New York: Springer.
  19. Ranganathan, K. V. K. (1988). Indian joint ventures abroad. ISID Working Paper, No. 2. New Delhi: Institute for Studies in Industrial Development.
  20. Sauvant, K. P. & Pradhan, J. P., Chatterjee, A.  & Harley, B. (eds.) (2010). The rise of Indian multinationals: Perspectives on Indian outward foreign direct investment. New York: Palgrave Macmillan.
  21. Vinayak, H. V., Thompson, F., & Tonby, O. (2014). Understanding ASEAN: Seven things you need to know. McKinsey & company. Retrived from https://www.mckinsey.com/industries/public-sector/our-insights/understanding-asean-seven-things-you-need-to-know
Abstract Views: 10
PDF Views: 9

Advanced Search

News/Events

3rd International Co...

About the Conference At the outset, the multifarious Covid-19 pande...

International Confer...

ABOUT THE INTERNATIONAL CONFERENCE Today, the world of business is ...

Call for Reviewers

In keeping with JPI’s policy of commitment to high standards of ...

Call for papers

JPI invites original and unpublished manuscripts in the areas of comme...

By continuing to use this website, you consent to the use of cookies in accordance with our Cookie Policy.