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Why do many investors resort to acquisitions to establish operations in India, and what advantages does this route offer?

Q&A

Acquiring an existing Indian firm to facilitate entry into India offers advantages to foreign investors such as reduced supply chain and establishment costs, a pre-existing sales base and a rapid establishment of market position, to name a few. However, investors should be aware that sectoral restrictions on foreign ownership may reduce potential acquisition targets, and all foreign acquisitions are subject to approval by the Indian Supreme Court.



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