What are Overseas Direct Investments?

Important banking qna for banking aspirants, which is helpful in banking exam.

Created On: Feb 4, 2015 17:48 IST

What are Overseas Direct Investments?

  • Joint Ventures/Wholly Owned Subsidiaries abroad promote economic co-operation between India and the host countries.
  • They result in transfer of technology and skills, sharing the results of Research & Development, access to the global market, promotion of the brand image, generation of employment and utilization raw materials available in India and the host country, increased exports of plant and machinery and goods and services from India, foreign exchange earnings through dividend earnings, royalty, technical know-how fee, etc.
  • Since globalization of trade is a two-way process, integration of the Indian economy with the rest of the world with all its attendant benefits is achieved through overseas investment.
  • It is the reverse of Foreign Direct Investment (FDI) i.e. Indian direct investment abroad.

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