India's Surge in FDI Inflows
India attracted a substantial $41.5 billion in foreign direct investment (FDI) last year. This inflow constitutes 9.6% of the country's gross fixed capital formation, a stark contrast to the mere 1.9% annual average in the 1990s.
Outward Investments Expand
Simultaneously, India's outward investments or overseas flows amounted to $17.7 billion, roughly 4.1% of its gross fixed capital formation. This figure dwarfs the annual average overseas investments of $110 million during the last decade, representing a mere 0.1% of gross capital formation.
FDI Stocks Accumulate
Over the years, India's FDI stocks have grown significantly. The stocks, which stood at $1.6 billion in 1990, skyrocketed to $123.3 billion by 2008. This represents 9.9% of India's GDP, compared to a meager 0.5% in 1990.
Comparison with China
In contrast, China's FDI flows, which were $20.7 billion in 1990, soared to an astonishing $378 billion last year.
Cross-Border Mergers and Acquisitions
In the realm of cross-border mergers and acquisitions, Indian companies witnessed a remarkable surge in net sales. From an annual average of $282 million in the 90s, net sales increased to $4.4 billion in 2007 and further to $9.5 billion in 2008. Correspondingly, Indian companies' purchases of overseas firms, which averaged $104 million annually during the 90s, peaked at $29 billion in 2007 but declined to $11.6 billion last year due to the global economic and financial crisis.
Notable Indian Companies
Two Indian companies, Tata Steel and ONGC, secured spots among the top 100 non-financial transnational companies from developing countries in 2007, ranked by foreign assets.
