The Internationalization of Firms From
India: Investment, Mergers and
Acquisitions
DEEPAK NAYYAR
ABSTRACT This paper analyses the rapid expansion in outflows of foreign direct investment from
India and the spurt in foreign acquisitions by Indian firms, during the past decade, situated in the
wider context of international investment from developing countries. Much of the investment was in
manufacturing activities and most of the acquisitions were in industrialized countries. The economic
stimulus and the strategic motive for the internationalization of firms from India were provided by a
range of underlying factors driving the process, which differed across肱骨结节间沟局部形态解剖分析 sectors and firms. The rapid
growth in investment and acquisitions by Indian firms were partly attributable to factors implicit in
the liberalization of the policy regime and the greater access to financial markets; but it must be
recognized that Indian firms could not have become international without the capacity and the
ability to compete in the world market. The attributes of Indian firms, which created such capacities
and abilities, are embedded in the past and have emerged over a much longer period of time.
1. Introduction
The early 2000s have witnessed a significant change in the pattern and nature of
international investment in the world economy, associated with the emergence of new
international firms from the developing world. This phenomenon is not new. It was an
important theme in Sanjaya Lall’s work more than two decades ago;
1
but recent years have
witnessed a transformation that simply could not have been imagined, let alone anticipated
at that time. The object of this paper is to analyse the rapid expansion in outflows of
foreign direct investment from India and the spurt in foreign acquisitions by Indian firms
during the past decade, situated in the wider context of international investment from
developing countries.
The structure of the paper is as follows. Section 2 sketches a profile of outward foreign
direct investment from developing本文来自辣,文'论-文·网原文请找腾讯752018766 and geographical distribution of foreign我国施工企业项目成本管理中的问题与策略
direct investment outflows from India, to highlight similarities and differences with such
international investment from developing countries. Section 4 assembles and examines
ISSN 1360-0818 print/ISSN 1469-9966 online/08/010111-21
I would like to thank Raphael Kaplinsky and Frances Stewart for helpful comments and Ananya Ghosh
Dastidar for valuable assistance.
Deepak Nayyar, Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru
University, New Delhi 110 067, India.2741