Columbia International Affairs Online: Policy Briefs

CIAO DATE: 03/2010

Indian FDI falls in global economic crisis: Indian multinationals tread cautiously

Jaya Prakash Pradhan

August 2009

Columbia Center on Sustainable Investment

Abstract

After growing faster than other emerging markets for some time, Indian investment abroad declined in 2008 and will decline further in 2009. The global slowdown has made a difference, as have the credit crunch and a depreciating Indian currency. The stronger than expected domestic GDP growth in the first quarter of 2009 is a positive sign in this context, as is the fact that not every Indian firm with foreign interests is cash-poor.