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Reasons for Indian Companies
to invest overseas
 
Main industries that engage in outward FDI
European Market
Services provided by invest-India

Reasons for Indian Companies to invest overseas

The relationship between India and the EU started in the early 1960’s and in the recent years, the EU has developed itself as India’s largest trading partner. This is one of the reasons why more and more Indian companies make FDI’s in one of the EU countries; in between 2002 and 2006 26 % of all FDI projects that were realized by Indian companies were realized in Europe, making it the second largest market for outward FDI projects after Asia Pacific.

The main reasons why the European market is an interesting market for Indian companies to invest in are:

It has a variety of niche markets close together. The member countries all have different cultural characteristics but there is a possibility of free exchange of goods and services in between the member countries.
There is a large skilled labor force in Europe. Being a developed region almost everybody receives education.
The accessibility of the different countries is very good as Europe has an extensive logistics network of traffic by air, road and rail.
The practices mostly used by Indian companies to enter the European market until now include: strategic acquisitions; establish synergies with Indian operations; and recruitment of local talent. On this page we will present a short overview of some statistics comparing different European countries. When your company is looking into investing in a European country, a full country report can be prepared by invest-India.

Graphs on efficiency of distribution infrastructure, global ranking

Most open economies by trade and investment in percent of GDP
Most flexible employment regulation top 10 ranking among EU countries
Corporate Income Tax.