India Fact of the Day

From a recent speech Ms Shyamala Gopinath, Deputy Governor of the Reserve Bank of India- Overseas investments by Indian companies – evolution of policy and trends;

- As per data available with RBI, during the financial year 2005-06 the total value of Indian direct investments abroad was USD 2.7 billion,

A report of the Boston Consulting Group (BCG) on the emerging multinationals in the world puts 21 Indian companies among the top 100 such multinationals. Only China with 44 companies is ahead of India. Tata group, Bharat Forge, Infosys, Wipro, ONGC, Ranbaxy and such Indian companies are venturing overseas and expanding at breakneck speed. Industrial goods, steel, automotive components, resource extraction, beverages, cosmetics, pharmaceuticals, mobile communications, software and financial services are some of the sectors where considerable interest has been shown by Indian corporates. The BCG research has shown that 88% of the emerging market global players are driven by the need to gain access to new markets and profit pools. Overseas markets are expected to bring higher margins, revenue and volumes, besides opportunities for further growth. Energy security is another driving force behind global acquisitions.