Understanding the internationalization of Indian state-owned enterprises

ABSTRACT

The article examines the global activities of high-value Indian state-owned enterprises (SOEs) classified by the government as “Maharatnas” and “Navratnas.” Using the FESPET framework, the paper assesses their performance and international presence, revealing their commitment to a public mission beyond financial gains. These SOEs prioritise social spending and often surpass regulatory environmental targets, serving as valuable assets in India and globally. Profitable SOEs demonstrate positive impacts abroad, while financially unsustainable ones fall short in contributing to the non-financial “ESPET” dimension.

KEYWORDS:

• State-owned enterprises
• internationalization
• emerging markets
• India
• public enterprises
• State-owned multinational enterprises

JEL CLASSFICATION:

• L21
• L25
• L32
• L33
• L38

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1. For more details, refer to the Reserve Bank of India Notification: Master Direction – Direct Investment by Residents in Joint Venture (JV)/Wholly Owned Subsidiary (WOS) Abroad https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10637#C5 (RBI 2021)

2. Strategic Sale means the sale of large government shareholding (not necessarily major) to a strategic investor. In strategic sales, the management control is transferred to the investor, even if the strategic partner is not the major shareholder.

3. Asset monetization is leasing out of state-owned assets.

4. The government has cancelled the strategic sale of Pawan Hans after the disqualification of the winning bidder.

5. The technology is called Advanced Ultra Super Critical (AUSC) technology. It will be used to transform inefficient old power-generating units into more efficient and less polluting units.