Article
Introduction: The Rise of Indian Multinational Enterprises. Revisiting Key Issues
The Rise of Indian Multinationals: Perspectives on Indian Outward Foreign Direct Investment
(2010)
Abstract
The introduction contains a systematic analysis of the rise of Indian OFDI. In doing so, it presents several new perspectives on Indian MNEs, including that Indian firms rely less on outside help and acquire overseas companies; and that there is a distinct regional focus. It also examines why most investment occurs in knowledge-based industries. The changing trends and patterns of Indian OFDI cannot be understood by isolating traditional theories from new approaches. What is needed is the joint use of the two generations of theories to understand the entire, long-term, path of Indian OFDI. In particular, the prominence of business groups in the process of OFDI, reflecting the typical nature of Indian entrepreneurship and business practices, calls for the modification and expansion of the existing theoretical framework of emerging market MNEs. One should also be mindful of the central role of political factors in explaining the rise of such MNEs. Reflections on the important question of how Indian FDI is faring and how it is affecting host countries deliver new insights are worthy of further analysis.
Disciplines
Publication Date
2010
Citation Information
Jaya Prakash Pradhan and Karl P. Sauvant, “Introduction: The Rise of Indian Multinational Enterprises. Revisiting Key Issues,” in Karl P. Sauvant and Jaya Prakash Pradhan, with Ayesha Chatterjee and Brian Harley, eds., The Rise of Indian Multinationals: Perspectives on Indian Outward Foreign Direct Investment (New York: Palgrave Macmillan, 2010), pp. 1-23.