India, of late, has emerged as a major source of foreign direct investment (FDI). A recent study by IBM Global Business Services ranked India sixth worldwide in terms of overseas jobs creation in 2007 and 2008, ahead of China (IBM 2009a). Within a span of just eight years, from 2000 to 2008, India’s outward FDI (OFDI) stock has grown over 33-fold, from about US$1.9 billion to US$61.8 billion (United Nations Conference on Trade and Development 2009b). The Reserve Bank of India registered further outflows of US$10.6 billion in the first nine months of 2009 (Reserve Bank of India 2009, 2010). This growth is even more remarkable when contrasted with the meager US$124 million of OFDI stock that India held in 1990 (United Nations Conference on Trade and Development 2009a).
