Austrian direct investment in India

Abstract

Globalization 3.0 makes it possible for so many more people to plug in and play, and you are going to see every color of the human rainbow take part.“ The phenomenon of globalization has attracted significant attention in India and it is clear, that globalization is irrevocable. It will remain of considerable importance to trade, economic growth, sustainable human development and poverty eradication in India. It is essential that globalization is not viewed as a mere consequence of market forces alone. On the on hand it has political roots, on the other hand, transnational corporations (TNCs) and international capital flows have been driving the agenda with civil society groups and global movements by focusing on issues such as human rights, environment and women’s rights, attempting to add a democratic dimension to the debates. It was 1500 when the capital penetration in India started with the establishment of the Portuguese factory at Calicut. The British East India Company was then founded in 1599, followed by Dutch East India Company in 1602 and French companies in 1614. After independence in 1947 India followed a fairly restrictive foreign investment policy. All this changed since 1991. The inflow of foreign direct investment increased rapidly during the late 1980s and the 1990s in almost every region of the world. By virtue of globalization, so far most developing countries are strongly associated to the global economy by trade and FDI flows. The partnership of Austria and India has great potential, since the trade volume is steadily increasing. The potential lies especially in the building- and infrastructure sector as well as in the environmental engineering and alternative energies.