Globalisation 2.0, can it be furrowed home?

As far as photo-ops go, an Indian business family announcing a mega project on US soil at the Oval Office in the presence of POTUS makes for a pretty picture. Essar's plans for a $15 bn steel complex in Iowa, supported by an iron ore mine in Minnesota, can be seen as a comeback story - if one decides to see it as a comeback story, important funding details other than trade financiers still being hazy. But there's a bigger story marinating: Indian corporate houses taking Globalisation 2.0 through the greenfield or inorganic cross-border expansion route. In the last year, Tata Motors, Sun Pharma and Persistent Systems have taken M&A strides. From auto components to solar panels, pharma to tech, a handful are taking steps to build overseas. But is India Inc increasingly hedging its bets in a volatile world - even beta-testing MAGAmerica - at the cost of its domestic base?

In March, Trump announced an 'historic' RIL-anchored $300 bn investment in a Texas-based entity building a major oil refinery, securing a 20-yr purchase agreement for the refinery's output. Dollar outflow and commitment of capital, tech to buttress strategic US industrial prowess, and jobs may seem an indictment of India's decade-plus push towards localisation and aatmanirbharta, especially with aggregate net income of listed Indian firms approaching a record 6% of GDP. But the fact is that their capex has remained flat, hovering at 3.6-3.7% of GDP.

Other than the top 4 - Adani, JSW, Tata and Reliance - 'animal spirits' of mid-level homegrown corporates seem to be shrinking. Their dwindling share in national investment can be a challenge in a country of rising un-/under-employment. So, when will India Inc's new expansionary spirit bring the fruits of Globalisation 2.0 home?