Global acquisition spree reflects growing confidence: Reddy
Hailing the successful acquisition of European steel major Corus by Tata Steel, RBI Governor Y V Reddy on Wednesday said the recent spate of acquisitions abroad reflected the confidence of the global financial markets in India Inc.
By PTI |
MUMBAI: Hailing the successful acquisition of European steel major Corus by Tata Steel, RBI Governor Y V Reddy on Wednesday said the recent spate of acquisitions abroad reflected the confidence of the global financial markets in India Inc.
Indian corporate confidence levels were high presently and "with the (Indian) economy showing strong signs of competitiveness and high productivity, corporate confidence is warranted," Reddy told reporters here.
Though not directly commenting on the Tata acquisition, Reddy said that resources for such acquisitions were more easily available nowadays.
"Given global liquidity and stock-market prices, resources are available at fairly liberal prices," he said.
Earlier, Indian companies did not enjoy the advantages of scale and domain knowledge, but now they have realised that the best way to acquire both was through overseas acquisitions.
Growth prospects in the country were also high with the economy displaying robustness, government revenue deficit coming down and productivity increasing, he said.
Indian corporate confidence levels were high presently and "with the (Indian) economy showing strong signs of competitiveness and high productivity, corporate confidence is warranted," Reddy told reporters here.
Though not directly commenting on the Tata acquisition, Reddy said that resources for such acquisitions were more easily available nowadays.
"Given global liquidity and stock-market prices, resources are available at fairly liberal prices," he said.
Earlier, Indian companies did not enjoy the advantages of scale and domain knowledge, but now they have realised that the best way to acquire both was through overseas acquisitions.
Growth prospects in the country were also high with the economy displaying robustness, government revenue deficit coming down and productivity increasing, he said.
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