The Development Of Indian Multinational Corporations And Its Inspiration

Since 1980s more countries have took part in the economic globalization and they tie in reciprocally, contain and interact one another. FDI becomes the significant element of economic globalization and incorporation as the international capital. Sooner after political independence, Indian firms started to invest outward by setting up joint ventures or wholly owned subsidiaries. In early 1960's, a number of Indian fines went overseas establishing subsidiaries or joint ventures with local firms. And during the following two or three decades, Indian firms had been investing outwards continuously. Since economic liberalization commencing in early 1990's, Indian firms have been raising their outward FDI flows. Since economic reform India's outward FDI has been developing remarkably owing to fast domestic economic growth, positive policies from the government and economic globalization. The amount is becoming larger and larger and investing activities spread most industries in various destinations through nearly all sorts of investing ways. India has become a very remarkable investor in the world.As the neighbor of India, it is necessary for us to research FDI comprehensively in India, use the advanced experiences for reference, develop our multinational enterprises, and develop FDI of our country. Combining with theory of FDI of transnational corporations, this paper systematically discusses the multi-aspects of India's outward FDI. This paper discusses the general conditions, characteristics, reasons and government policies of outward FDI from Indian firms after economic reform starting in early 1990's. And it also gives the outlook of India's outward FDI as well as the enlightenment for China's overseas FDI.The paper contains four parts. The first one is generality which gives the background of this subject and the present research conditions inside and outside the country. The second part is about FDI theory of transnational corporations and about that of Indian situations. The third parts discuss respectively the general conditions, characteristics, reasons and government policies of outward FDI by Indian firms after economic reform. The last part is about the prospects of outward FDI by Indian firms.