India’s Corporate Globalization Accelerates: Outbound Expansion Grows 53 percentage vs 17 percentage Inbound Growth

India’s Corporate Globalization Accelerates: Outbound Expansion Grows 53 percentage vs 17 percentage Inbound Growth

Mumbai, Sep 23: The emerging Multinational Benefits Guide by Howden Employee Benefits examines how companies are managing employee benefits across different markets. It looks at Indian companies with overseas operations as well as foreign-owned businesses in India and highlights the challenges employers face in meeting local regulations, responding to employee expectations and managing costs.

The report records 8,285 Indian companies with cross-border investments, an increase of around 53% in two years. These include companies across IT services, pharmaceuticals, manufacturing, fintech, engineering and consumer sectors, with operations in markets such as Singapore, the US and the UK. It also identifies nearly 34,500 foreign-owned businesses operating in India, up 17% over the same period. This includes 2,117 Global Capability Centres, which together employ more than 2.3 million people.

For employers, managing employees across different countries brings a common challenge: how to provide benefits that meet local regulations, remain competitive for employees and continue to make commercial sense. Indian companies entering a new market may initially have relatively small teams, but they are still expected to provide benefits that are relevant to the local workforce. 

Cost and measurable value remain important considerations for Indian employers. Benefits programmes therefore need to balance local employee expectations with consistency, cost efficiency and a clear return on investment.

Long-term international deputations add another layer of complexity. Employers must consider international medical insurance, continuity of pension and retirement benefits, repatriation support and, in some cases, continued protection for parents and dependants in India. These requirements can vary significantly across markets and employee groups.

Foreign companies operating in India face a different set of pressures. As Global Capability Centres compete for talent, employee benefits are becoming an important part of attracting and retaining skilled professionals. Programmes designed at a global level may also need to be adapted to the expectations and needs of employees in India.

Howden and REBA’s research shows that half of multinational businesses, in India and globally, do not have a competitive global or multinational benefits strategy in place*. As more companies manage employees across multiple markets, the need for locally relevant, compliant and cost-effective benefits is becoming harder to overlook.

Howden x REBA Multinational Benefits Strategy Research 2023

Leigh Dauncey, Regional Employee Benefit Leader- India, Middle East and Africa at Howden, commented:

“As businesses scale internationally, whether they are Indian companies moving into new markets or global firms expanding their India operations, benefits design is quickly becoming a critical business consideration. Getting it right requires a partner who understands the compliance requirements of each market, the expectations of employees and the commercial need to demonstrate value.

“For Indian companies, the challenge is particularly nuanced. Benefits must support locally hired teams as well as employees on long-term international assignments, without losing sight of cost, consistency or the needs of families who may remain in India. Emerging multinationals need robust benefit structures designed for lean, fast-moving teams, and many are navigating this complexity without the right support.” 

Pratyush Ranjan, Associate President & Head of Multinational Employee Benefits, Howden India, commented:

“Global companies are scaling their Capability Centres here and competing for talent, while a new generation of Indian companies is establishing teams overseas.

“For Indian employers, this often means finding the right balance between local compliance, employee expectations and cost efficiency. It also means addressing the needs of employees on long-term deputation, from international medical cover and retirement continuity to repatriation support and protection for dependants in India. The goal is to create benefits that work across borders while delivering clear and measurable value to the business.”