Parmjit Singh, head of the India business group at Eversheds, has commented following Sun Pharmaceuticals’ acquisition of Ranbaxy.
Singh said that many in India will be concerned to see this announcement, as many see investment by Japanese companies as key to improving FDI flows into India and to help grow domestic GDP.
‘Is this an indication that doing business in India is too difficult or was this simply an offer too good for Japan’s Daiichi Sankyo to turn down? Will other investors follow? Only time will tell,’ he said.
Singh added: ‘Expect the opposition party, BJP, to make a lot of this news in a country that went to the polls today [7 April 2014] for national elections. BJP have been openly critical of the ruling National Party for not being business friendly.’