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Large inbound deals have had to face rough weather for a variety of regulatory reasonsa telling comment on the messy business climate in India
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Two large investments by Japanese companies in the noughties were seen as vanguard deals by a nation looking at India as a counterweight to China: the $4.6 billion that drug maker Daiichi Sankyo paid for control of Ranbaxy Laboratories in 2008 and the $2.7 billion paid by mobile telecom operator NTT DoCoMo for a stake in Tata Teleservices a year later. Both companies have decided to exit India after their investments failed.
Japan continues to have successful large investments in India. Maruti Suzuki is a prime example. It also continues to support many public infrastructure projects. Yet, the two marquee deals struck accounted for nearly half of the total foreign direct investment from Japan since the turn of the century.
Some other large inbound deals in recent years have involved global companies such as Vodafone, Posco, BP and Vedanta Resources. Each has had to face rough weather for a variety of regulatory reasons—a telling comment on the messy business climate in India.
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