FDI Outflows from India: An Examination of the Underlying Economics, Policies, and their Impacts

Abstract

This paper discusses the trends in India's outward FDI over the last decade and then attempts to identify the driving factors. The aim is to provide policy makers with insights regarding levers which would help in encouraging FDI outflows and to stimulate further research in foreign investment from emerging economies. The paper also discusses the key policy changes that impacted outward FDI from India in the last decade and relationship of outward FDI with other macroeconomic indicators such as GDP and Fischer Open Differential.