The Trends in the Industry Sectors and Geographical Locations that Allure Maximum Outward FDI from India

Abstract

Purpose of the study

The study looks at the changes in India's outer FDI. It also looks at the difficulties that may occur because of India's Outward Foreign Direct Investment. The Indian economy has been more exposed to foreign money because of liberalisation and globalisation, FDI is critical to a country's economic development. India, as a rising country, is the BRICS' second most desirable FDI destination. India is rated fourteenth in the world in terms of industry production. This occurred because of the implementation of a programme targeted at developing industrial zones and attracting foreign investment.

Design/methodology/approach

In this study, the researchers conduct their investigation using secondary data. Secondary sources are employing to gather statistical data, including journals, agencies, and governmental institutions, among others.

Findings

The increased drive for reform is coming from developing nations and transforming economies, where many private and state-owned firms are progressively expanding outside through FDI. Companies are developing their activities by investing in international markets to have a regional and global footprint. External FDI from India has expanded quickly since 2005-06 because of India's internal and international export policy liberalisation

Originality

The Indian economy has become increasingly open to foreign money. Foreign direct investment (FDI) is crucial to a country's economic growth. Changes in policy settings across nations have had a significant influence on the global economy's outward investment pattern. The goal of this study figures out how much money spend as external FDI and how its categories depending on time and development level.