Title: Indian overseas direct investment in services sector: a study on emerging trends and patterns

Authors: Sivalingam Veeramani; Anam

Addresses: Centre for Management Studies, Jamia Millia Islamia University, New Delhi 110025, India ' Centre for Management Studies, Jamia Millia Islamia University, New Delhi 110025, India

Abstract: This paper is an analytical study of the recent trends and patterns of Outward Foreign Direct Investment (OFDI) from India focusing on the services sector. The study uses firm-level OFDI data from the Reserve Bank of India from 2008 to 2018 to analyse Indian services OFDI growth, composition, destination, mode of entry and ownership participation. We have found a rapid growth in services OFDI from India, majorly driven by investments in financial and business services. It is found highest in Singapore, Netherland and Mauritius with an increasing share in other diverse markets such as the UAE and Switzerland. Wholly owned subsidiaries are the most preferred choice for expansion in overseas markets. However, mergers and acquisitions (M&A) have also emerged as an attractive choice for Indian services firms to strategically expand their businesses globally. The paper also highlights key M&As held abroad by Indian services firms in recent years.

Keywords: OFDI; outward foreign direct investment; merger and acquisition; services; India.

DOI: 10.1504/IJCM.2021.120012

International Journal of Comparative Management, 2021 Vol.4 No.1, pp.17 - 35

Received: 14 Dec 2020
Accepted: 03 May 2021
Published online: 04 Jan 2022 *

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