An increasing number of public enterprises from India and other developing countries are internationalizing their operations, and some are even turning into multinational corporations. The paper discusses some of the motives for internationalization as well as factors facilitating and inhibiting it. The paper also discusses the organizational design appropriate for internationalization, and some issues in the management of internationalization of PEs. The paper concludes with a brief discussion of the opportunities and threats internationalizing PEs may pose to MNCs from developed countries.