India Inc set to become net deal exporter to developed world

Credit crunch may have gripped the economy elsewhere, but India Inc is continuing to roar onto the global arena and is all set to become net exporters of deals to the developed world, according to global audit and consultancy giant KPMG.     

"With outbound deals now having outnumbered inbound deals for the each of the last three six-month periods, India seems well set to become a net 'deal exporter' in the next Emerging Markets International Acquisition Tracker (EMIAT) in 2009," KPMG said.     

Reinforcing the growing power and international presence of Indian corporates, an analysis of deals between emerging and developed economies since 2003, shows there were 322 completed deals where Indian buyers have acquired companies in the major developed economies, KPMG said.     

This, compared to 340 deals completed in the opposite direction, wherein developed economy entities bought into India, it said in its EMIAT study.     

"This is testament to the growing power of the Indian corporate base. At a time when everyone is talking about the credit crunch and Sovereign Wealth funds, Indian trade buyers have simply continued doing what they have been doing for several years now," said Ian Gomes, Chairman, KPMG's New and Emerging Markets practice in the UK.     

India is also far ahead of other BRIC economies in terms of becoming a net exporter of deals. Within EMIAT, in volume terms, the country's outbound deals now equate to 95 per cent of their inbound total. By comparison, Russia boasts a 30 per cent figure, while China and Brazil lag behind at 12 and nine per cent respectively.