Indian Integration with the World Economy: Important Role of M&A and Corporate Restructuring
Posted: 12 Mar 2010
Date Written: March 10, 2010
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: Suggested Citation