Recent events surrounding China’s aggressive political and business tactics coupled with its rather poor handling of the containment of the coronavirus spread have made global economies wary of India.
Recent events surrounding China’s aggressive political and business tactics coupled with its rather poor handling of the containment of the coronavirus spread have made global economies wary of the country, propelling them to look for alternate avenues of business and trade. The recent India–China border clash in mid-June that resulted in the death of 20 Indian soldiers has also enraged Indian citizens, making them averse to using Chinese products and services. It resulted in an outraged public seeking a ban on apps, and even boycotting products manufactured there. This has brought greater focus on Indian manufacturers, who up till now had to fight for attention in their own market amidst the presence of foreign counterparts, particularly cheaper goods from China.
With India emerging as a top contender in attracting foreign investments in the manufacturing and business sector, our government has renewed focus on Indian manufacturing and its Make in India initiative has gained further traction, potentially promoting India’s dream of becoming Asia’s next superpower. In light of this, Mergers and Acquisitions (M&A) are being considered as the best way out for both Indian and international companies who want to conform to the Indian government’s initiatives and promote local manufacturing, while adopting and retaining the global best practices in manufacturing and trade. Mergers and Acquisitions are an effective tool to harness the advanced technical know-how and larger pool of financial resources of foreign businesses along with the Indian manufacturers’ deeper understanding of the complex local market and wider network of customers and suppliers.
Source: Financial Express
