<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This article concerns the determinants of foreign direct investment (FDI) outflow from India to Poland with some insights to other European countries. This topic strongly relates to globalization of foreign trade and especially new economic initiatives between European Union (EU) and India, which was one of the first countries to develop trade relations with EU. According to CEIC data – Financial Data and Economic Indicators, India’s FDI outflow increased slightly to 1.4 billion USD in September 2019 in comparison with 996.5 million USD in September 2018, but it is still below the average of 1.8 billion USD for a period of 2007–2019.<fn id="j_ijme-2020-0008_fn_001" symbol="1"><p>Available at: <ext-link ext-link-type="uri" xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="https://www.ceicdata.com/en/india/foreign-direct-investment-outflow/foreign-direct-investment-outflow">https://www.ceicdata.com/en/india/foreign-direct-investment-outflow/foreign-direct-investment-outflow</ext-link> (accessed October 19, 2019).</p></fn> Very limited number of the scientific research can be found in European literature about India’s FDI outflow to EU countries in period of 2004–2019. Indian economists made some research on that topic. Professor J. Ramachandran (listed among the Best Management Thinkers for the year 2015, the first Bain Fellow in India) from Indian Institute of Management Bangalore in 2004 and Professor Jaya Prakesh Pradhan from Central University of Gujarat in 2008 explored the evolution in Indian outward FDI, referring to a shift in the pattern of overseas expansion and basis of competitiveness of Indian companies. The main goal of this article is to explain what really triggers Indian investors to go to Poland and what kind of businesses they form. Some examples of the Indian-based companies are mentioned to support the analysis. The author of this article also researched on different governmental bilateral trade agreements and initiatives, trying to find any direct impacts of that on the India FDI outflow to Poland and other EU countries. He used empirical method of the analysis based on accessible data for period 2004–2019 and literature in that topic and also direct interviews with private Indian investors who made decision to start and run their business in Poland or other EU countries. The main conclusion is that Poland the leader of Visegrad Group is an interesting investment for India and India can be for Poland a counterpart investment partner to China.</p>
</abstract>

This article concerns the determinants of foreign direct investment (FDI) outflow from India to Poland with some insights to other European countries. This topic strongly relates to globalization of foreign trade and especially new economic initiatives between European Union (EU) and India, which was one of the first countries to develop trade relations with EU. According to CEIC data – Financial Data and Economic Indicators, India’s FDI outflow increased slightly to 1.4 billion USD in September 2019 in comparison with 996.5 million USD in September 2018, but it is still below the average of 1.8 billion USD for a period of 2007–2019.Available at: https://www.ceicdata.com/en/india/foreign-direct-investment-outflow/foreign-direct-investment-outflow (accessed October 19, 2019). Very limited number of the scientific research can be found in European literature about India’s FDI outflow to EU countries in period of 2004–2019. Indian economists made some research on that topic. Professor J. Ramachandran (listed among the Best Management Thinkers for the year 2015, the first Bain Fellow in India) from Indian Institute of Management Bangalore in 2004 and Professor Jaya Prakesh Pradhan from Central University of Gujarat in 2008 explored the evolution in Indian outward FDI, referring to a shift in the pattern of overseas expansion and basis of competitiveness of Indian companies. The main goal of this article is to explain what really triggers Indian investors to go to Poland and what kind of businesses they form. Some examples of the Indian-based companies are mentioned to support the analysis. The author of this article also researched on different governmental bilateral trade agreements and initiatives, trying to find any direct impacts of that on the India FDI outflow to Poland and other EU countries. He used empirical method of the analysis based on accessible data for period 2004–2019 and literature in that topic and also direct interviews with private Indian investors who made decision to start and run their business in Poland or other EU countries. The main conclusion is that Poland the leader of Visegrad Group is an interesting investment for India and India can be for Poland a counterpart investment partner to China.

Determinants of foreign direct investment outflow from India to Poland

Collegium of World Economy, SGH Warsaw School of Economics

International Journal of Management and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"Determinants of foreign direct investment outflow from India to Poland"}

This article concerns the determinants of foreign direct investment (FDI) outflow from India to Poland with some insights to other European countries. This...

FDI determinant	Vertical FDI	Horizontal FDI	Overall FDI impact
Transport cost (TC)	Negative if TC is high	Positive if TC is high	Ambiguous
Size of the host market (SoM)	Positive if SoM is large	No impact	Positive
Cluster (C)	Positive if C is attractive	Positive if C is attractive	Positive
Taxes in the host country (TX)	Positive if TX is low	Positive if TX is low	Positive
Raw material cost (RC)	Positive if RC is low	Positive if RC is low	Positive
Investment climate (IC)	Positive if IC is more friendly	Positive if IC is more friendly	Positive
Trade barriers (TB)	Positive if TB are low	Negative if TB are low	Ambiguous
Abilities to repatriate profits (AP)	No impact	Positive if AP are high	Positive

Company	Sector	Investment (million EUR)	Jobs created	Year
Intelenet Global Services	BSS-BPO	3.0	300	2009
Uflex	packaging	65.0	130	2011
Wipro	BSS-BPO	2.0	200	2011
Mphasis	BSS-IT	1.0	80	2012
Qburst	BSS-B&R	0.3	35	2012
Infosys	BSS-BPO	1.5	300	2013
WNS Global Services	BSS-BPO	2.5	500	2013
HCL Poland Sp. z o.o.	BSS-IT	1.00	250	2017
Varroc Lighting Systems Sp. z o. o.	Automotive	42	400	2018
Varroc Lighting Systems Sp. z o.o.	BSS-B&R	1.5	150	2019
ALLIANCE RENTALS Sp. z o.o.	Tourism	5	10	2019
Total		124.8	2,355

Determinants of foreign direct investment outflow from India to Poland

Article Category: Empirical Paper

Data publikacji: 20 maj 2020

Zakres stron: 109 - 117

Otrzymano: 27 gru 2019

Przyjęty: 10 mar 2020

DOI: https://doi.org/10.2478/ijme-2020-0008

Słowa kluczowe
FDI, vertical FDI, horizontal FDI, India–EU strategic partnership, BTIA, multinational companies, determinants, technology spillovers, FDI Confidence Index

© 2020 Robert Dygas, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Impact of the foreign direct investment (FDI) determinants

India FDI outflow to Poland in period 2009–2019

Determinants of foreign direct investment outflow from India to Poland

Article Category: Empirical Paper

Data publikacji: 20 maj 2020

Zakres stron: 109 - 117

Otrzymano: 27 gru 2019

Przyjęty: 10 mar 2020

DOI: https://doi.org/10.2478/ijme-2020-0008

Słowa kluczoweFDI, vertical FDI, horizontal FDI, India–EU strategic partnership, BTIA, multinational companies, determinants, technology spillovers, FDI Confidence Index

© 2020 Robert Dygas, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Impact of the foreign direct investment (FDI) determinants

India FDI outflow to Poland in period 2009–2019

Słowa kluczowe
FDI, vertical FDI, horizontal FDI, India–EU strategic partnership, BTIA, multinational companies, determinants, technology spillovers, FDI Confidence Index