IT sector sets overseas business trend
Monday, 05 April 2010, 15:30 IST   |    5 Comments
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IT sector sets overseas business trend
Bangalore: To strengthen their competitiveness, IT companies initiated the trend to take their business overseas, and few years later companies from across sectors; pharma, chemicals, automotive, mining, oil and gas, FMCG, textiles, gems and jewellery, joined the league of overseas investors. If we notice we would find that outward FDI flows from India, which were to the tune of a few million dollars in 2000 jumped to $4.3 billion in 2005 and further to $9.9 billion in 2006. In 2007, Indian investment abroad totalled $32.8 billion. FICCI studies show that even in 2008, when the global economy came under fire due to the US subprime crisis, Indian companies invested close to $13 billion abroad. Today, we can easily say that the presence of Indian companies across the world is not hidden. Recently during the economic crisis, it was witnessed that Indian companies were at better place in all the departments than some of the strongest players globally. After recession also they have a huge chest of investible funds and very little debt burden compared to companies in the developed world. Today, companies from India are counted amongst the lowest cost producers of steel, auto components, optical discs, automobiles, laminated tubes etc. Above all, Indian companies are demonstratively entrepreneurial. All these together form a winning combination and this explains why Indian companies are accepted with readiness all over. In the current situation, we can say that the trend will further take hold as the western countries are facing uncertain economic prospects and this is affecting the fortunes of their corporate.

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