Capital Exit |
For years, India’s economic narrative rested on a simple promise: the world’s fastest-growing large economy would inevitably become the natural destination for global capital. Yet an increasingly important question is now emerging from within India’s own corporate sector. If India is truly the next great investment frontier, why are so many Indian companies deploying their biggest bets abroad? The answer lies not in nationalism or corporate disloyalty, but in economics.
A visible shift is underway in India Inc’s investment behaviour. Major conglomerates and mid-sized firms alike are increasingly acquiring foreign companies, establishing overseas manufacturing bases and diversifying into dollar-linked assets. On paper, these moves reflect confidence and global ambition. In reality, many of them are also hedges against domestic uncertainty. That distinction matters. The Indian economy today presents a paradox. Corporate profitability has improved sharply since the pandemic, stock markets remain elevated........