Indian ecenomy is facing many problems such as indian currency is depreciating very fast, political scenario is not good for foreign investment, balance of payment is also increasing etc. in times like this why majority of big name companies are interested in buying companies in eurozone, USA etc. Because of the depreciating currency they are made to pay more,Euozone is also in their own crisis situation so there are adverse factors affecting companies, instead of that why don't they invest in india which will help indian ecenomy also to recover from this slump.

1. A company's (Indian or othewise) responsibility is to its owners. Specifically, the responsibility is to earn the best possible risk-adjusted return on the assets which the owners have entrusted to the company. Hence, you go where the returns are.
2. If one's home currency is weakening relative to some other currency(ies), it's an incentive to have a greater proportion of one's revenues denominated in the strengthening currency(ies).
3. IF a country doesn't have repressive or punitive repatriation policies, some significant portion of foreign-generated profits will come home to roost. Case in point: Not too many years ago, while US-based General Motors was enduring years of red ink domestically, it was kept afloat largely from profits earned overseas. It's likely that there are a boatload of US GM employees whose jobs still exist due in large part to this subsidizing effect from external profits.

If companies and people don't have the courage to expand in bad times, things never get better. It is the risk takers that either get rich, or lose it all at times. When things are slowing down, like in the US, that is when most small businesses are started.

It is a cycle that makes things grow.

Also just because a over all economy is in recession, it does not mean that all companies are.

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Originally Posted by stormrider

Indian ecenomy is facing many problems such as indian currency is depreciating very fast, political scenario is not good for foreign investment, balance of payment is also increasing etc. in times like this why majority of big name companies are interested in buying companies in eurozone, USA etc. Because of the depreciating currency they are made to pay more,Euozone is also in their own crisis situation so there are adverse factors affecting companies, instead of that why dont they invest in india which will help indian ecenomy also to recover from this slump.

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India is an unknown and a developing economy. In order to invest an overseas investor must take many risks and work within an unknown market.It is true that because of depreciating currency there may be windfall profits but this can rapidly turn around exposing the investor to currency and soveriegn risk. An investor is not interested in helping the Indian economy but in exploiting a market. There are also internal risks in India which means an investor must spend a great deal of time in evaluation of the appropriate place to base the investment. It is far easier to exploit a developed but depressed situation in a place like Greece or Spain where they know there is a strong pool of trained labour than to set up in a country where the availability of trained labour is uncertain