Bangalore: The year, 2011 went through a transition from external to domestic acquisition of Indian cos in terms of raising resources.

The year 2006, was a year of economic global expansion in terms of capital as it witnessed overseas acquisitions by most Indian cos. India’s Tata Steel cos conquest of Anglo-Dutch steelmaker, Corus brought a major overhaul in Indian economic market which accentuated a renewed interest towards hitting deals for acquisition of new markets and new technology overseas. The Tata-Corus link-up has made India the fifth World's fifth largest steelmaker. Since then, prominent acquisitions included, Hindalco's purchase of Novelis, UB Group's acquisition of Scottish whiskey-maker Whyte & Mackay and Tata Motors buying Jaguar Land Rover.

However it’s not going to be the same in the current year as overall economic crisis in 2011 continues to impede the global economic growth raising an uncertainty on global economic prospects. With Indian Cos. reeling under economy crisis, such as inflation and Indian currency fluctuations in international market, emerging market economies are gearing up  for acquisition of Indian cos. The global players are increasingly slashing money outlay for Indian acquisition of cos, while inbound transactions by mid-sized Indian companies are on a steady decline. This year the major thrust is on in-bound transactions targeted towards acquisition of small and medium enterprises in India.

Ravi Sardana, The Executive Vice-President at ICICI Securities said, “There is a renewed interest in India. Global players which are facing slowdown in their home countries are making India their pillar of growth," Adding to it, he said that the Indian market are the best repulsive and profitable enterprise for low cost product development within low budget.

 According to the report from advisory firm,Grant Thornton, foreign capital investments and fundraising for private equity funds went up to $22.7 billion ( 1.2 lakh Crore) vis-a vis foreign transactions which grew to 125 from 82 in the year 2011.While in the year 2010, outbound investments suffered a downfall amounting a depressing $10.4 billion which is almost half, compared to the previous year. This year, the U.S giant , Omnicom Group takeover of Anil Ambani-controlled Mudra Group, one of the largest domestic advertising firms acquired a majority stake while South Africa's second-largest hospital chain, Life Healthcare, which is the leading supplier on medical products, acquired 26 percent stake in Max Healthcare, Indian private hospital. Several other acquisitions of mid-sized enterprises included Olam International's takeover of  Vallabhdas Kanji and Udaipur-based startup Cerebrata acquired by Red Gate Software. This year, the main targets of overseas acquisition are information technology and IT-enabled services, automotive, cement and healthcare.