Indian corporates are far ahead of the government with regard to cross-border mergers and acquisitions, and foreign direct investments. India is just now getting in step with its domestic companies, considering comprehensive regulation in support of outward foreign direct investment: specific measures to support cross-border direct investment by Indian firms are being considered, including possible government guarantees to mitigate political risks.
In a similar vein, South Africa has made a key change to its foreign exchange regulations, which is expected to lead to more cross-border investment, especially in the rest of Africa.
Better late than never, though: leverage provided Indian companies through economic liberalization strengthens their chances to compete globally against looming competition from Chinese companies. The latter's outward investments are set to rise sharply, partly in response to the government's "Go Global" policy.
Yes, esp it's true in the case of Indian IT industry.
Posted by: Bob | September 28, 2006 at 01:14 AM