New report suggests India is likely to become more influential in Asia-Pacific

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Chinese Businessman
A business man rides an escalator in the financial district of Pudong in Shanghai September 21, 2011 Reuters/Aly Song

A new report suggests that India will possibly become more influential in Asia-Pacific in the next five years. It is likely that the number of cross-border transactions that involve Indian companies will rise.

Based on a report by global law firm Baker McKenzie and Merger market, 90 percent of 150 business leaders from the Asia Pacific foresee the number of cross-border M&A transactions that involve Indian companies to surge. At least 90 percent of those who responded to the survey believe that Indian economic influence in the region would become stronger within the next five years while 77 percent said China’s influence will only continue to grow.

Ashok Lalwani, Global Head of India Practice, Baker McKenzie said Asia-Pacific will play an increasingly pivotal role in boosting international trade and investments. This factor, along with the Government of India's progressive outlook, is speeding up the country’s favourable position to do business as it strengthens the country's influence in the region.

Apart from strong growth rate, the country’s influence is expected to stem from its charisma as a destination for investment. The report further indicated that Prime Minister Narendra Modi's pro-business government has received a positive impact as it influenced respondents to think that the Indian government has become the most active in Asia-Pacific when it comes to improving the ease of doing business in the country.

Furthermore, the data noted that technology is the top complexity with companies across the region. Shrinking margins and technological disruption from competitors comes next per the report titled Asia Pacific Business Complexities Survey 2017.

Meanwhile, Belfast Telegraph reports that Chancellor Philip Hammond is set to launch a major trade mission to India. “As we prepare to leave the European Union, it is more important than ever that we strengthen our relationship with India, one of the world's leading economies and one of our oldest friends and allies,” he said, adding that trade and investment relationship between the two countries is already firm.

Business Secretary Greg Clark is set to meet with Indian ministers for discussion about improving cooperation in energy between India and the United Kingdom. He notes that India does more investments in the UK compared to the rest of the EU combined. The UK, on the other hand, is the largest G20 investor in India. Clark said he is looking forward to discussing how the UK Government's industrial strategy will boost the prospects for shared trade, investment and energy innovation between the two countries.

Video Source: YouTube/ AP Archive