Indian Companies’ Global Aspirations in East Central Europe

Part of the Studies in Economic Transition book series (SET)


India’s global share in outward foreign direct investment (OFDI) among the developing countries increased from a low level of the 1980s to second only to China after 2010. Not only there has been a spectacular rise in Indian overseas investment activity, but the structure of Indian OFDI has also changed dramatically in the last decades, concentrating more on advanced economies, such as the European Union (EU). The chapter makes a critical assessment of Indian companies’ internationalization experience, by providing an empirical collection about those successful Indian companies that sought to enter the EU. The focus is on East Central Europe because the region combines attributions of both advanced and developing countries and serves as a gateway for Indian investment seeking entrance to the EU.


India OFDI Internationalization East Central Europe Technology-seeking investment Global value chains Production system Global contender 


  1. Agarwala, R., Kumar, N., & Riboud, M. (Eds.). (2004). Reforms, Labour Markets and Social Security in India. Oxford: Oxford University Press.Google Scholar
  2. Amighini, A. A., Rabellotti, R., & Sanfilippo, M. (2013). Do Chinese State-Owned and Private Enterprises Differ in Their Internationalization Strategies? China Economic Review, 27, 312–325.CrossRefGoogle Scholar
  3. Amighini, A., Cozza, C., Giuliani, E., Rabellotti, R., & Scalera, V. G. (2015). Multinational Enterprises from Emerging Economies: What Theories Suggest, What Evidence Shows. A Literature Review. Economia e Politica Industriale, 42(3), 343–370.CrossRefGoogle Scholar
  4. Athukorala, P.-C. (2009). Outward Foreign Direct Investment from India. Asian Development Review, 26(2), 125–153.Google Scholar
  5. Boston Consulting Group. (2018). “Global Challengers,” Chapter Two: Meet the Challengers. Retrieved from
  6. Bucsky, P. (2018, November 9). Hungary Is One of the Biggest Losers of Multinationals’ Transferpricing. magazine. Retrieved from
  7. Charlie, A. (2012). ‘Indian Companies in the European Union, Reigniting Economic Growth’, Europe India Chamber of Commerce (EICC), Brussels.Google Scholar
  8. Chase-Dunn, C., Yukio Kawano, Y., & Brewer, D. B. (2000). Trade Globalization Since 1795: Waves of Integration in the World-System. American Sociological Review, 65(1). Looking Forward, Looking Back: Continuity and Change at the Turn of the Millenium (February 2000), pp. 77–95.Google Scholar
  9. Chaudhry et al. (2018). Deconstructing Indian Overseas Foreign Direct Investments, Historical & Contemporary Trends. Oxfam Discussion Papers.Google Scholar
  10. De Beule, F., & Somers, D. (2017). The Impact of International R&D on Home-Country R&D for Indian Multinationals. Transnational Corporations, 24(1), 27–55.CrossRefGoogle Scholar
  11. Dunning, J. H. (1988). The Eclectic Paradigm of International Production: A Restatement and Some Possible Extensions. Journal of International Business Studies, 19(1), 1–25.CrossRefGoogle Scholar
  12. Dunning, J. H., Kim, C. S., & Park, D. H. (2008). Old Wine in New bottles: A Comparison of Emerging-Market TNCs Today and Developed-Country TNCs Thirty Years Ago. In K. P. Sauvant (Ed.), The Rise of Transnational Corporations from Emerging Markets: Threat Or Opportunity? (pp. 158–178). Cheltenham, UK: Edward Elgar Publishing.Google Scholar
  13. Emmott, B., Gros, D., Jin, K., & Roach, S. S. (2018). Trumps Trade War. In: Project Syndicate. Retrieved from
  14. EXIM Bank. (2014). Outward Direct Investment from India: Trends, Objectives, and Policy Perspectives. Mumbai: EXIM Bank.Google Scholar
  15. Feenstra, R. C. (1998). Integration of Trade and Disintegration of Production in the Global Economy. Journal of Economic Perspectives, 12(4), 31–50.CrossRefGoogle Scholar
  16. FICCI (Federation of Indian Chambers of Commerce and Industry). (2006). India Inc.’s Acquisitions Abroad. New Delhi.Google Scholar
  17. Fleury, A., & Fleury, M. T. A. (2011). The Internationalization of Indian firms. In A. Fleury & M. T. A. Fleury (Eds.), Brazilian Multinationals Competences for Internationalization (pp. 366–380). Cambridge University Press.Google Scholar
  18. Gereffi, G. (2014). Global Value Chains in a Post-Washington Consensus World. Review of International Political Economy, 21(1), 9–37.CrossRefGoogle Scholar
  19. Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The Governance of Global Value Chains. Review of International Political Economy, 12(1), 78–104.CrossRefGoogle Scholar
  20. Gerőcs, T. (2013). A magyar cégek nagy fantáziát látnak Indiában (“Hungarian Companies See the Potential in India”). Napi Gazdaság. Retrieved from
  21. Gerőcs, T. (2017, October). Internationalization of Indian Multinational Enterprises Motivations, Strategies and Regulation from the Experience of Indian Investments: A Focus on Europe. Centre for Economic and Regional Studies HAS Institute of World Economics, Working Paper Nr. 234 (2017), 1–40.Google Scholar
  22. Gerőcs, T. (2018a). Indian Companies’ Technological Investments in the EU with a Special Focus on Central and Eastern Europe’. Institute of World Economics, Hungarian Academy of Sciences, Working, 248, 1–57.Google Scholar
  23. Gerőcs, T. (2018b). India világgazdasági integrációja (“India’s World-Economic Integration”). In J. Kiss (Ed.), Stratégiaváltás a világgazdaságban (Strategical Change in the World Economy) (pp. 143–178). Akadémiai Kiadó.Google Scholar
  24. Girma, S., Gorg, H., & Pisu, M. (2008). Exporting, Linkages and Productivity Spillovers from Foreign Direct Investment. Canadian Journal of Economics, 41(1), 320–340.CrossRefGoogle Scholar
  25. Gopinath, S. (2007). Overseas Investments by Indian Companies – Evolution of Policy and Trends. Mumbai: RBI.Google Scholar
  26. Hattari, R., & Rajan, R. S. (2010). India as a Source of Outward Foreign Direct Investment. Oxford Development Studies, 38(4), 497–518.CrossRefGoogle Scholar
  27. Humphrey, J., & Memedovic, O. (2003). The Global Automotive Industry Value Chain: What Prospects for Upgrading by Developing Countries. Vienna: United Nations Industrial Development Organization.Google Scholar
  28. Katrak, H. (1990). Imports of Technology and the Technological Effort of Indian Enterprises. World Development, 18(3), 371–381.CrossRefGoogle Scholar
  29. Khan, H. (2012). Outward Indian FDI: Recent Trends and Emerging Issues. RBI. Bombay Chamber of Commerce and Industry, 2/3/2012.Google Scholar
  30. Kohli, R. (2005). Liberalizing Capital Flows: India’s Experiences and Policy Issues. Oxford: Oxford University Press.Google Scholar
  31. Kumar, N. (2008). Internationalization of Indian Enterprises: Patterns, Strategies, Ownership Advantages, and Implications. Asian Economic Policy Review, Japan Center for Economic Research, 3(2), 242–261.Google Scholar
  32. Kumar, N., & Aggarwal, A. (2005). Liberalization, Outward Orientation and In-house R&D Activity of Multinational and Local Firms: A Quantitative Exploration for Indian Manufacturing. Research Policy, 34, 441–460.CrossRefGoogle Scholar
  33. Kuzminska-Haberla, A. (2012). The Promotion of Outward Foreign Direct Investment – Solutions from Emerging Economies. Working Paper, Institute of International Business, University of Gdansk No. 31, Poland.Google Scholar
  34. Lall, S. (1982). The Emergence of Third World Multinationals: Indian Joint Ventures Overseas. World Development, 10(2), 127–146.CrossRefGoogle Scholar
  35. Lall, S. (1983). Multinationals from India. In S. Lall (Ed.), The New Multinationals: The Spread of Third World Enterprises (pp. 21–87). New York: John Wiley and Sons.Google Scholar
  36. Liu, W., & Dicken, P. (2006). Transnational Corporation’s and “Obligated Emneddedness”: Foreign Direct Investment in China’s Automobile Industry. Environment and Planning A, 38(7), 1229–1247.CrossRefGoogle Scholar
  37. Mathews, J. A. (2002). Competitive Advantages of the Latecomer Firm: A Resource-Based Account of Industrial Catch-Up Strategies. Asia Pacific Journal of Management, 19(4), 467–488.CrossRefGoogle Scholar
  38. Milelli, C. (2007). Outward Expansion by Indian Firms: The European Route. Working Paper 2007–25, Paris EconomiX.Google Scholar
  39. Nair, S. R., Demirbag, M., & Mellahi, K. (2015). Reverse Knowledge Transfer from Overseas Acquisitions: A Survey of Indian MNEs. Management International Review, 55(2), 277–301.CrossRefGoogle Scholar
  40. Narayanan, K., & Bhat, S. (2011). Technology Sourcing and Outward FDI: A Study of IT Industry in India. Technovation, 31(4), 177–184.CrossRefGoogle Scholar
  41. Narula, R. (2004). Understanding Absorptive Capacity in an ‘Innovation System’ Context: Consequences for Economic and Employment Growth. MERIT-Infonomics Research Memorandum Series 3, Maastricht.Google Scholar
  42. Nayak, K. J. R. A. (2011). Indian Multinationals. The Dynamics of Explosive Growth in a Developing Country Context. Palgrave Macmillan.Google Scholar
  43. Nayyar, D. (2008). The Internationalization of Firms from India: Investment, Mergers and Acquisitions. Oxford Development Studies, 36(1), 111–131.CrossRefGoogle Scholar
  44. Nölke, A., & May, C. (2019). Liberal Versus Organised Capitalism: A Historical-Comparative Perspective. In T. Gerőcs & M. Szanyi (Eds.), Market Liberalism and Economic Patriotism in the Capitalist World-Systems (pp. 21–42). Palgrave.Google Scholar
  45. Nölke, A., May, C., Mertend, D., & Schedelik, M. (2018). Challenges for the Stability of State-Permeated Capitalism in Large Emerging Countries: The Cases of Brazil and India. In Paper Prepared for the 25th IPSA World Congress of Political Science July 21–25, 2018, Brisbane, Australia. Retrieved from
  46. Panagariya, A. (2004). India in the 1980s and 1990s: A Triumph of Reforms. IMF Working Paper WP/04/43. International Monetary Fund.Google Scholar
  47. Perea, J. R., & Stephenson, M. (2018). Outward FDI from Developing Countries, Chapter 4. Global Investment Competitiveness Report 2017/2018, pp. 101–134.Google Scholar
  48. Pradhan, J. P. (2004). The Determinants of Outward Foreign Direct Investment: A Firm-Level Analysis of Indian Manufacturing. Oxford Development Studies, 32(4), 619–639.Google Scholar
  49. Pradhan, J. P. (2017). Indian Outward FDI: A Review of Recent Developments. Transnational Corporations (UNCTAD), 24(2), 43–70.Google Scholar
  50. Pradhan, J. P., & Aggarwal, R. (2011). On the Globalness of Emerging Multinationals: A Study of Indian MNEs. Economia e politica industriale – Journal of Industrial and Business Economics, 38(1), 163–180.Google Scholar
  51. Pradhan, J. P., & Das, K. (2013). Exporting by Indian Small and Medium Enterprises: Role of Regional Technological Knowledge, Agglomeration and Foreign Direct Investment. Innovation and Development, 3, 239–257.CrossRefGoogle Scholar
  52. Pradhan, J. P., & Singh, N. (2009). Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector. International Journal of Institutions and Economies, 1(1), 155–186.Google Scholar
  53. Pradhan, J. P., & Singh, N. (2011). Business Group Affiliation and Location of Indian Firms’ Foreign Acquisitions. Journal of International Commerce, Economics and Policy, 2(1), 19–41.CrossRefGoogle Scholar
  54. Rajan, R. S., & Yanamandra, V. (2015). Managing the Macroeconomy. Monetary and Exchange Rate Issues in India. Basingstoke: Palgrave Macmillan.Google Scholar
  55. Ramamurti, R. (2012). What Is Really Different About Emerging Market Multinationals? Global Strategy Journal, 2(1), 41–47.CrossRefGoogle Scholar
  56. Ramamurti, R., & Singh, J. V. (2009). Indian Multinationals: Generic Internationalization Strategies. In R. Ramamurti & J. V. Singh (Eds.), Emerging Multinationals in Emerging Markets (pp. 110–166). Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  57. RBI. (2016). Master Direction – Direct Investment by Residents in Joint Venture (JV) / Wholly Owned Subsidiary (WOS) Abroad, RBI/FED/2015-16/10.Google Scholar
  58. Roman, T., Manolica, A., & Maha, L.-G. (2014). The Dynamics of Indian FDI in Europe and Its Impact on Romanian–Indian Relations. Current Science, 107(10), 1666–1672.Google Scholar
  59. Sauvant, K. P., & Pradhan, J. P. (2010). Introduction: The Rise of Indian Multinational Enterprises: Revisiting Key Issues. In K. P. Sauvant & J. P. Pradhan (Eds.), The Rise of Indian Multinationals: Perspectives on Indian Outward Foreign Direct Investment (pp. 1–24). New York: Palgrave Macmillan.CrossRefGoogle Scholar
  60. Tata Consultancy Services. (2016). Company Disclose, “kiegészítő melléklet” e-beszámoló. Retrieved August 20, 2017.Google Scholar
  61. Taylor, H. (2017). Uncovering the Institutional Foundations of Specialization Patterns in the Indian Pharmaceutical Industry. Transnational Corporations, 24(1), 57–79.CrossRefGoogle Scholar
  62. Thomas, R., & Narayanan, K. (2017). Determinants Outward Foreign Direct Investment: A Study of Indian Manufacturing Firms. Transnational Corporations, 24(1), 9–26.CrossRefGoogle Scholar
  63. Topalova, P., & Khandelwal, A. (2011). Trade Liberalization and Firm Productivity: The Case of India. Review of Economics and Statistics, 93(3), 995–1009.CrossRefGoogle Scholar
  64. Varju, M., & Papp, M. (2019). Member State Economic Patriotism and EU Law: Legitimate Regulatory Control Through Proportionality? In T. Gerőcs & M. Szanyi (Eds.), Market Liberalism and Economic Patriotism in the Capitalist World-Systems (pp. 127–151). Palgrave.Google Scholar
  65. Venkata Ratnam, C. S. (1998). Economic Liberalization and the Transformation of Industrial Relations Policies in India. In A. J. Venkata Ratnam & A. Verma (Eds.), Challenge of Change: Industrial Relations in Indian Industry. Mumbai: Allied Publishers Limited.Google Scholar
  66. Venkata Ratnam, C. S. (2006). Industrial Relations. Delhi: Oxford University Press.Google Scholar

Copyright information

© The Author(s) 2020

Authors and Affiliations

  1. 1.Institute of World EconomicsCentre for Economic and Regional StudiesBudapestHungary

Personalised recommendations