A number of foreign acquisitions by India Inc especially the latest of Corus Group by Tatas may result in FDI outflows exceeding inflows this year.The acceleration in investment activity abroad by Indian firms has given steam to FDI outflows which have exceeded the total foreign inflows into the country this year. Overseas acquisitions by few major domestic companies this year alone amounted to over $10 billion.A report by Crisil Centre for Economic Research says that the rising tide of Indian investment overseas reflects the imperatives of operating in a globalised market place. Indian firms are now driven by the need to seek the cheapest resource mix and locate operations where these are available.Tata Steel's recent announcement to buyout Anglo-Dutch steel major Corus for $8.04 billion and country's largest electronics firm Videocon planning to acquire South Korean Daewoo Electronics for $700 million highlight corporate India's increasing global foothold.
