Strategic Management Of Foreign Direct Investment: Potential Markets Analysis

Abstract

India has made its place in the top 100 clubs on Ease of Doing Business(EoDB) and has gradually occupied the first rank in Greenfield FDI There has been an increase in its inward and outward FDI However through the gap between the two has been narrowing sharply over the years, yet it has remained a net recipient of FDI for all the years. While the inward FDI shows its attractiveness as a destination for global investment, its OFDI reflects its capability of venturing out into the global market and make a global presence. India has not only shown an increase in its OFDI but has reflected some unique features like major investment in developed and sophisticated destination countries rather than its neighbour developing countries, the same sectors appearing as its major inward and outward investment field reflecting the underlying link between the two with the roles played by factors like liberal government FDI policies, market size, the development status of these sectors etc. This paper seeks to empirically analyse the inward and OFDI of India with respect to its status, direction, composition and future prospects.