India Inc. seems to be on a shopping spree. It was almost a decade back when India announced its arrival on the global stage with big domestic companies going for major overseas deals. And then followed the heady days between 2006 and 2008 marked by events such as Tata Steel buying Corus. But the momentum could not be maintained. The slowdown in domestic economy and tough global funding stifled global ambitions. However, a series of recent merger & acquisition (M&A) announcements by companies of the likes of ONGC, M&M and Hinduja suggests that Indian companies might be getting back into action.
A key point here will be the motivation behind the act. The move sure will give access to precious assets or foreign technology abroad. But it also signifies the frustration of corporations with the corruption and unfriendly investment environment back home. If things don't change for the better, we could witness further capital drain. And that could become the biggest crisis looming before the Indian economy.
A key point here will be the motivation behind the act. The move sure will give access to precious assets or foreign technology abroad. But it also signifies the frustration of corporations with the corruption and unfriendly investment environment back home. If things don't change for the better, we could witness further capital drain. And that could become the biggest crisis looming before the Indian economy.
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