Book Review: The Rise of Indian Multinationals: Perspective of Indian Outward Foreign Direct Investment

In its publication “Reserve Bank of India Occasional Papers” (Vol. 32. No. 1, Summer 2011) India’s central bank has published a review of the book “The Rise of Indian multinationals: Perspective of Indian Outward Foreign Direct Investment”, edited by Karl P. Sauvant and Jaya Prakash Pradhan with Ayesha Chatterjee and Brian Harley (Palgrave MacMillan: New York), 2010; pp 284, £90.

The review also includes a chapter on Indian investments in Germany. The reviewer Arvind K. Jha (Assistant Adviser, Department of Economic and Policy Research, Reserve Bank of India, Mumbai) writes:

“Chapter 8 on ‘The Emergence of Indian Multinationals: An Empirical Study of Motives, Current Status, and Trends of Indian Investment in Germany’, by Rajnish Tiwari and Cornelius Herstatt, presents the results of a empirical survey conducted among Indian subsidiaries operating in Germany. Survey brings out the fact that the majority of Indian companies investing in Germany are from service sectors like software and IT industry (more than half of Indian companies), pharmaceuticals and the automotive industry. Important factors behind the Indian OFDI to Germany are long tradition of economic relations between these two countries, proximity to their customers and suppliers, large access to German market and availability of skilled labour. Another interesting finding of this survey study is that Indian MNEs are net job creators in the Germany. The study also finds that Indian subsidiaries have generally performed well and look forward to strengthen their operational presence in Germany, including research and development activities. However, the survey also highlights the challenges, including cross-cultural issues, being faced by Indian MNEs in Germany.”

Source: Reserve Bank of India
http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=2490

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