With Growing Confidence, India Pursues Mergers Abroad

With India removing protectionist shackles, its businesses are no longer content with large market shares in the country and now seek a global reach, reports Vikas Bajaj in a blog for the New York Times. In the last year and a half, Indian companies have spent more money on outbound mergers and acquisitions than foreign companies have spent on Indian deals, according to one accounting firm. Deals such as Mahindra’s $460 million acquisition of a 70 percent stake in South Korean automotive company Ssangyong and Bharti Airtel’s $10.7 billion acquisition of pan-African phone company Zain are indicative of Indian companies’ global aspirations. In going abroad, “Indian companies are…looking to acquire new technology, enter new markets and secure resources,” Bajaj explains. Although the global financial crisis as well as perceived slowness of Indian policymakers to liberalize has muted recent outward thrust of companies in the short-term, the mindset of pursuing global trade is here to stay. – YaleGlobal