Working Papers in Trade and Development Internationalization of Indian Enterprises: Patterns, Determinants and Policy Issues Prema-chandra Athukorala and C. Veeramani March 2016 Working Paper No. 2016/04 Arndt-Corden Department of Economics Crawford School of Public Policy ANU College of Asia and the Pacific This Working Paper series provides a vehicle for preliminary circulation of research results in the fields of economic development and international trade. The series is intended to stimulate discussion and critical comment. Staff and visitors in any part of the Australian National University are encouraged to contribute. To facilitate prompt distribution, papers are screened, but not formally refereed. Copies may be obtained at WWW Site http://www.crawford.anu.edu.au/acde/publications/ Internationalization of Indian Enterprises: Patterns, Determinants and Policy Issues Prema-chandra Athukorala Arndt-Corden Department of Economics Crawford School of Public Policy Australian National University Canberra, ACT 2601
[email protected] C. Veeramani Indira Gandhi Institute of Development Research Goregaon East, Mumbai 400065 India
[email protected] Abstract This paper examines the emerging patterns and economic implications of Indian overseas direct investment (ODI) from a historical perspective. The novelty of the analysis lies in its specific focus on the implications of the liberalization reforms initiated in the early 1990s and the resultant changes in the overall investment climate for the internationalisation of domestic companies. The findings cast doubts on the popular perception that the recent surge in ODI from India is an unmixed economic blessing, a sign of “coming of age” of the Indian companies in global business.