LONDON, June 26 /PRNewswire/ --

- Foreign Direct Investment by Indian Companies to Increase by 15% Per 
Annum Over the Next Five Years

India is rapidly becoming one of the leading source countries worldwide 
for foreign direct investment (FDI) projects, according to new research from 
FDI specialist, Oxford Intelligence.

Global Outbound FDI Potential of Indian Companies 2007, a new study from
Oxford Intelligence, shows that the country's share of global outward
investment (FDI, mergers and acquisitions) has trebled over four years and
that outbound activity in 2006 alone increased by 26%. The report forecasts
continued growth averaging 15% over the next five years; indeed, 2007 will
see growth of 19% on activity on 2006. Some 95% of the Indian companies
interviewed for the report had firm international expansion plans for 2007
and 2008. North America, in particular, is expected to emerge as a 'hot spot'
for Indian outward investment, with levels of activity trebling over the next
five years.

"Although discussion of India today tends to focus on the growing tide of
foreign companies looking to establish operations in the country through
direct investment, joint ventures or through outsourcing, today's Indian
companies have a truly global vision and are becoming an increasingly
important source of outbound investment," said report author, Oxford
Intelligence research director, Michel Lemagnen. "The removal in 2005 of key
restrictions on Indian companies' ability to expand internationally triggered
a sharp increase in overseas expansion. The country's top companies are now
in an extremely healthy position in terms of cash, profitability and
financing capacity and their potential for international investment, through
both M&As and FDI, for the next few years is extremely favourable."

The report shows that, whilst M&A mega-deals such as Tata-Corus have
captured world headlines, Indian companies have become increasingly active in
a wide range of organic FDI projects. IT/software, life sciences and business
services ( especially outsourcing ), where Indian companies are potentially
genuine world leaders, have to date dominated that activity - but financial
services, electronics, chemicals, plastics and the automotive industry all
have significant unrealised potential.

The report also highlights the fact that Indian outbound FDI activity has
to date been concentrated in a limited number of countries and, within those
countries, in a limited number of cities - in part due to a lack of awareness
by Indian companies of the advantages of alternative locations. London is the
key beneficiary of Indian outward investment, taking one third of activity in
the four years to 2006. Other 'hot spots' of activity are the UAE and China.

About Oxford Intelligence

Established in 1996, Oxford Intelligence (www.oxint.com) is a specialist
research and information company focused on cross-border trade and foreign
direct investment, working on international location issues and economic
development. It provides its clients with a range of business intelligence,
research services, consulting and information systems.

Report Contents

    Introduction
    Executive Summary
    The Context of Indian Outbound Investment
    Historic Indian Outbound FDI Trends
    The State of the Indian Industry - Sector Profiles
    Future Investment Strategies
    Awareness and Usage of Economic Development Agencies and Professional
    Services Providers
    Key Indian Companies - Rankings
    Pages: 178
    Cost: GBP5,700
    Available for purchase from: research@oxint.com