Abstract
The United States has been the world’s largest foreign investor, and the largest recipient of foreign direct investment, almost every year for several decades. While the bulk of inward and outward FDI has been from/to the other developed nations throughout this period, in the 2000s there has been a marked increase in the amount of inward FDI in the United States (and other developed countries) from emerging markets, and vice versa. The same pattern also holds for India’s outward FDI in the United States. Lately, Indian multinationals have been making ever more FDI in the United States, via both greenfield investments and mergers and acquisitions. Prospects for increased outward FDI from India in the United States remain bright – in view of improving economic conditions and near absence of regulatory controls against foreign investment in the United States, a buoyant corporate sector in India that has seen many very successful foreign investments, and Government of India’s progressively positive stance toward outward foreign direct investment.
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