In recent times, many Indian companies are seen taking the form of multinational companies. Some Indian companies are not only increasing their capital investment in companies of other countries but some companies are also acquiring companies of other countries. An important fact is emerging that India seems to be increasing its trade relations with many countries which may not be friendly to each other. For example, countries like United Arab Emirates, Qatar and Saudi Arabia are important trade partners of India in the Middle East and these countries are investing huge amount in India. Saudi Arabia is going to invest 10,000 crore US dollars in India. But, in recent years, India’s military, political and trade relations have deepened with some countries in the Middle East and also with Israel. Not only Israeli companies are investing in India but many Indian companies are also investing in Israeli companies and acquiring some companies. In this way, India has established strong trade relations not only with Arab countries but also with Israel. Many Indian companies are seen investing heavily in Israeli startups. Since India’s GDP is now about to touch the level of 4 trillion US dollars, Indian companies have now reached a position where, like multinational companies, they can acquire companies in various sectors in other countries or acquire these foreign companies. Can increase their capital investment in companies. From this point of view, some big Indian companies like Reliance Industries Limited (Mukesh Ambani Group), Infosys, Wipro, Tata Group, Adani Group etc. are achieving success in acquiring Israeli companies.
Recently, Reliance Industries Limited is trying to acquire a company named Tower Semiconductor, a semiconductor chip manufacturing company in Israel. There is a huge market available in India for the use of semiconductor chips, this will reduce India’s dependence on other countries for this product. The said Israeli company is already manufacturing semiconductor chips in large quantities. Earlier, American company Intel had tried to buy the said company for 540 crore US dollars but Intel could not get success in this task. But, now India’s Reliance Industries is trying to buy this company. Tower Semiconductor used to do business of only 300 million US dollars in the year 2009 but in the year 2022, the business of this company has increased to cross the level of 1680 million US dollars. Therefore, this company is progressing at a very fast pace.
Sun Pharma, a company manufacturing medicines in India, has also made an Israeli company called Tero Pharma its subsidiary. Due to this, Indian Sun Pharma Company has expanded in Israel also. Sun Pharma has also received assistance in developing new technology. Similarly, Indian company Adani Ports and Logistics has taken up the work of expanding Israel’s largest Haifa Port. An amount of US $ 115 crore will be spent on this expansion work. In the year 2021, about 56 percent of Israel’s total foreign trade was happening through this port. Tata Group’s information technology company Tata Consultancy Services (TCS) is also continuously expanding its business in Israel. India’s Infosys company has acquired Israel’s information technology company Panaya for US$200 million.
India’s Tata Group is increasing its investment in Israeli companies working in air space and security fields so that it can work together with Israeli companies in these areas. Israel has the latest technology available in manufacturing security equipment. India and Israel are now going to work together on the construction of tanks and radars. Anyway, military agreement has already been signed between India and Israel. Similar agreements are also being made with the aim of enhancing partnership with each other in the field of research and economic development in the field of industry, especially in areas like health, aerospace and electronics. Israel ranks fourth in the world in terms of private sector investment in the field of Artificial Intelligence, after the United States, China and the United Kingdom. Therefore, it is being expressed that India is also likely to benefit from India’s increasing partnership with Israel in the field of trade.
The number of Indian engineers in Israel is also increasing rapidly. Today, more than 18,000 engineers are working in Israel to develop software and this number is much less as compared to the engineers working in America, but now the demand for Indian engineers is increasing rapidly in Israel. Israel is also an important partner of India in the field of security. India buys high quality drones, missiles, and other equipment from Israel. Since the Israel-Hamas war, Palestinians working in Israel have been expelled from Israel. Therefore, now Israel has demanded one lakh Indian workers from the Indian government. On the other hand, Taiwan has also demanded one lakh Indian workers. Now the demand for Indian workers is also increasing in various countries.
Similarly, Indian companies are also increasing their investments in British companies. Tata Group has invested 217 crore euros in a British company called Corus. Reliance Group has invested 100 million euros in a battery manufacturing company called Fardian. Tata Group has invested more than 4 crore Euros in a company named Tetley. Tata Motors has acquired a company named Jaguar Land Rovers and Tata Motors is going to invest additional capital of 400 crore euros in this company. Making similar capital investments, various Indian companies in the field of information technology like Wipro and Infosys etc. are also acquiring British companies. Tata Chemicals Limited is also increasing its capital investment in some other companies. For the United Kingdom, India has become the second largest source of foreign direct investment. Today 954 Indian companies are operating in the United Kingdom and providing employment to 106,000 citizens there.
Due to the acquisition of Israeli and British companies by Indian companies and the capital investment made in these companies, the credibility of Indian companies is increasing all over the world and now some Indian companies are also being counted in the category of multinational companies.
– Prahlad Sabnani
Retired Deputy General Manager,
state Bank of India