Indian FDI falls in global economic crisis: Indian multinationals tread cautiously

Author
Jaya Prakash Pradhan
Content Type
Policy Brief
Institution
Columbia Center on Sustainable Investment
Abstract
Just over a year ago, outward foreign direct investment (OFDI) from India seemed to be on a path of rapid and sustained growth. Its annual average growth of 98% during 2004–07 had been unprecedented , much ahead of OFDI growth from other emerging markets like China (74%), Malaysia (70%), Russia (53%), and the Republic of Korea (51%), although from a much lower base. Much of this recent growth had been fuelled by large-scale overseas acquisitions, however, and it faltered when the global financial crisis that started in late 2007 made financing acquisitions harder.
Topic
Development, Economics, Foreign Direct Investment, Financial Crisis
Political Geography
Russia, China, Malaysia, India, Korea