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An Analysis of Foreign Acquisitions in India’s Manufacturing Sector

Beena Saraswathy
ISID Working Paper 193, August 2016
Globally cross border mergers and acquisitions (CM&A) are an important component of FDI Though. CM&A is less significant in India compared to the global scenario, its contribution is gradually increasing. This study throws light on the current foreign acquisition scenario in India and the emerging concerns. The study observed that across various sectors, many leading foreign firms are trying to eliminate competition in the domestic market by taking over competent firms with high growth potential. The major aim behind the takeover of Indian firms is to expand their Indian operations through acquisition route and to exploit the capabilities built by domestic firms through years of effort. The recent trend in the CM&A scenario is the acquisition of start‐ups. The study suggests a look into the Chinese experience, where, in certain
areas, foreign acquisitions a re scrutinised to ensure compliance with the national security concerns.
Courtesy: ISID
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