ABSTRACT
Cross-border transactions can be classified into two, cross-border purchases and cross-border sales. Cross-border purchases include the purchase of a foreign firm by an Indian firm whereas those of sales are the purchase of an Indian firm by a foreign firm. During 1990–2014, the top ten countries from Asia constituted 8 percent of the global value of cross-border mergers and acquisitions (M&A) sales and 16 percent of the global purchases. Despite the recent surge in cross-border deals, the Indian cross-border M&As' scenario is still in a nascent stage. Initially, its share was only 2 percent of the foreign direct investment (FDI) inflows, which reached 17 percent in 2014. Cross-border intensity appears high among some of the non-dominant sectors defined in terms of the number of the overall acquisitions. In the case of cross-border sales within the sectors, it was electrical appliances and allied dominated in terms of value, whereas machinery sector dominated in terms of the number of cross-border sales.
