Indian Companies' Overseas Foreign Direct Investment Set to Rise - CII

Given stable market conditions and the significant impact created by Indian companies on local economies, Indian overseas investments are likely to go up. As per the latest World Investment Report of UNCTAD, India's total cumulative stock of Overseas Foreign Direct Investment (OFDI) amounted to $155 billion in 2017.

Indian companies have been working with the local communities while investing abroad, generating substantial employment and creating benefits for the host economies, noted CII.

CII regularly tracks overseas investments by Indian companies in major countries to provide insights about their scale and performance and the impact they have on these economies. CII surveys have been conducted in the United States, China, United Kingdom, South Africa, and Germany.

The major sectors of interest for Indian companies in these countries are Information Technology (IT), pharmaceuticals, manufacturing, automotive, financial services, and business services, among others, according to the CII surveys.

Indian origin companies in China have presence across multiple industries headed by manufacturing (37%), followed by healthcare (19%), financial services (17%), IT & BPO (11%), telecommunications (9%), logistics (7%), and business consulting (6%). About 54% of the survey participants registered a y-o-y growth in 2017, with all of them expecting positive or same revenue growth in 2018. 44% of the surveyed companies plan to increase their investments in 2018.

Employment has significantly expanded in China with 56% of Indian companies employing more than 50 people as of 2017, and three companies employing more than 1000 workers, according to the survey. Some Indian companies active in China include TCS, NIIT, Mahindra & Mahindra, Tata Motors, Dr Reddy's Laboratories, etc. These are the results of a survey of 54 Indian companies, designed and administered by CII and analysed by Evalueserve.

In the US, 100 Indian companies took part in the fifth edition of the CII survey report Indian Roots, American Soil. These companies invested about $18 billion and employed more than 1.13 lakh people. They also significantly invested in Research and Development (R & D) with total R & D and innovation expenditure reported at more than $588 billion. About two-thirds of these companies were engaged in CSR activities, spending over $147 million.

Around 800 companies were examined in the CII-Grant Thornton India Meets Britain Tracker 2018 report. They generated revenues of 46.4 billion and 2.25 billion worth of operating profits. These companies employed more than 1 lakh people. 87 companies were identified as the fast-growing companies compared to 55 the previous year.

The CII-PWC report Indian industry's inclusive footprint in South Africa surveyed about 140 companies in South Africa. 45% of these companies invested more than Rand 33 billion and employed 11,000 people. Indian companies in South Africa are also involved in community activities including skilling the workforce, CSR investments etc.

The CII 2017 report on Germany, Indian Investments in Germany: Prospects for Shared Prosperity, in collaboration with Ernst and Young & Bertelsmann Foundation, found that around 140 investment projects were initiated in Germany since 2010. More than 1,300 jobs were generated in the country during 2010-2016. Ninety per cent of surveyed Indian CEOs believed that Brexit will further increase the attractiveness of Germany as an investment location for Indian companies.

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