Indian Integration with the World Economy: Important Role of M&A and Corporate Restructuring

Posted: 12 Mar 2010

See all articles by Raj Aggarwal

Raj Aggarwal

University of Akron; Federal Reserve Banks - Federal Reserve Bank of Cleveland; Kent State University; Kent State University Foundation

Date Written: March 10, 2010

Abstract

As the size and importance of its economy increases, India is becoming more integrated with the world economy. The process of deregulation and the economic reforms started in the early 1990s seems irreversible and continues to accelerate. In recent decades, transactions costs in India have been declining especially as India deregulates its business environment. Consequently, Indian businesses are moving away from being widely diversified and vertically integrated business groups to more focused, efficient, and often larger firms. In addition to the resulting corporate re-structuring and increased domestic M&A, many Indian firms are investing overseas and becoming nascent multinationals. These changes mean that the global integration of the Indian economy will continue to increase.

Keywords: India, Transactions Costs, Mergers and Acquisition,

JEL Classification: G20

Suggested Citation

Aggarwal, Raj, Indian Integration with the World Economy: Important Role of M&A and Corporate Restructuring (March 10, 2010). Available at SSRN: https://ssrn.com/abstract=1568342

Raj Aggarwal (Contact Author)

University of Akron ( email )

Akron, OH 44325-4803
United States

Federal Reserve Banks - Federal Reserve Bank of Cleveland ( email )

East 6th & Superior
Cleveland, OH 44101-1387
United States

Kent State University ( email )

College of Business Administration
Kent, OH 44242-0001
United States

Kent State University Foundation ( email )

Akron, OH 44325-4803
United States

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