Conclusion

The implementation of the new trade regime, financial liberalisation, agreement on Trade Related Intellectual Property Rights (TRIPS) and the Trade Related Investment Measures (TRIMS) under the WTO limited the scope and content of new industrial policies adopted by the Government of India early 1990s. As part of this new industrial policy, restrictions have been removed relating to licensing for expansion of enterprises, amalgamations and takeovers of business enterprises under the MRTP Act, acquisition of foreign technology and foreign investment. This was done under the assumption that such restructions hampered the expansion, diversification and upgradation of technology required for international competitiveness, which had become imperative with the opening up of the economy. Indian firms and business houses responded to such changes by adopting various growth strategies including M&As. The corporate sector in India witnessed a substantial growth in M&As since the 1990s. It is also noticed that Foreign Direct Investment (FDI) inflows and outflows took place in the form of CBM&As. In the first wave of M&As, Indian corporate houses had been bracing up to face foreign competition while the second wave since the year 1995 experienced a significant extent of buying out of joint ventures by multinational firms. This trend has accelerated since the 2000s. The macroeconomic policy changes in India have facilitated another form of acquisition movement since the year 2000, i.e., overseas acquisitions by the Indian firms. This book attempted to provide a comprehensive picture of the pattern, structure, motives, and implications of such M&As that occured in India during 1999-2000. An extensive survey of literature on motives and determinants of M&As mostly in the context of developed countries has provide insights to over analysis, especially to mark out the differences in our context. The main analysis of this study has been formulated in the framework of the Structure-Conduct-Performance

paradigm. The motives and implications of Indian FDI outflows through CBM&As has been examined based on the existing theoretical framework on Third World multinationals. An attemtp has also been made to analyse the changing structure of Indian industries, competition strategies adopted by Indian firms during the post-liberalisation period, their impact on major economic performance indicators and welfare indicators. The study draws some policy inferences relevant from the angle of competition policy and corporate governance.