International Seminar
on the determinants of
Foreign Direct Investment of Indian firms in Poland
organised by the Department of East Asian Economic
Studies,
World Economy Research Institute, Collegium of World Economy,
SGH Warsaw School of Economics
in cooperation with PAIH Polish Investment &Trade Agency

On the 28th of November 2019 SGH Warsaw
School of Economic, World Economy Research Institute, The Department of East Asian
Economic Studies in cooperation with Polish Investment & Trade Agency
(PAIH) organised closed seminar for Indian companies operating in Poland. The
opening was done by The Dean, Prof. Marzenna Weresa. The first part of the
seminar was PAIH’s presentation. What is an especially noteworthy takeaway is
that from October 2019, there are new criteria in force for the government cash
grants for new investments, allowing investors to cover up to 15% of eligible
investment costs.
The second part of the seminar concerned the
determinants of choosing Poland by companies as a location for their foreign
direct investment (FDI). A very interesting presentation was done by CEO of
Lumel. Mr. Dinesh Musalekar, who shared his experiences related to investing in
Poland. One of the key problems he described were regulatory issues related to
the liquidity of fixed assets (e.g. land) which impede the company’s
reinvestment plans. Another important aspects are: the steep increase of wages,
which forces the company to automate its operations, and the lengthy
bureaucratic process necessary to obtain foreign workforce from India (taking
close to a year). What mainly impacted the choice of Poland as the target
country for FDI was its steady GDP growth and the stability as part of the EU.
Indian company Lumel impacts local human capital development by technical
knowledge transfer, investing in their own engineering class (currently 70
students) in cooperation with various universities. The conclusions from this
seminar will be addressed to relevant authorities that deal with Foreign Direct
Investment in Poland.
Mr. Dinesh Musalekar, CEO Lumel
Dr Robert Dygas, World Economy Research
Institute, Department of East Asian Economic Studies, SGH Warsaw School of
Economics.