I INTRODUCTION Outward Foreign Direct Investment (OFDI) by Indian firnis is currently being witnessed as a significant force in the globalization of Indian economy. Decade of 2000s has experienced a strong emergence of Indian investment abroad. Firms such as TnTn, Birla, Mittal Steel, Reliance, Airtel, Sundaram fasteners and others are a part of this globalization drive. These Indian firms in their quest to go global and participate in an ever expansive global business activity have not only ventured into developing countries, but also into industrialized countries. However, this phenomenon is not new. From a historical perspective it is understood that many firms from developing countries have gone to the foreign shores in the 1960s, 1970s and 1980s. In fact, the first overseas Indian venture was a textile mill set up in Ethiopia in 1956 by Birla group of companies (Lall 1986:13). Although this particular project remained abandoned for long years, the pace of Indian investment did not stop with that episode. Rather the spurt has been significant, so much so that the number of ventures including production and implementation had reached 133 in 1976 which further shot upto 228 in 1983 (Ministry of Commerce, Government of India, 1984).
Journal of World Investment and Trade – Brill
Published: Jan 1, 2011