India Inc has come a long way from being a mere spectator in
global M&A to a force to be reckoned with.
However, outbound activity for the first quarter of 2009 has
been disappointing, falling nearly 86% to a meager $170.7
million. While some of this can be blamed on the credit crunch,
there is also an urgent need for reform to make Indian outbound
deals faster and easier. The government should review the
existing regulatory regime and import the best practices of
Presently the Indian rupee is not fully convertible on the
capital account. The government should permit full
convertibility of the rupee, which would aid outbound
transactions. The exchange control regulations in India also
cap the amounts that can be invested by Indian companies
abroad. The government should take a fresh look at the limits
imposed in terms of percentages of the net worth...