The Euro may have weakened and European heads of states and finances may appear to be scrambling for solutions to the economic issues on news channels but all is not grim as far as business interests between India and Europe goes. Despite what appears to be tumultuous times for everyone involved, there is an upside for Indian investors seeking asset acquisition to play in the European markets. Likewise, there are reasons for European investors eying the Indian market to be optimistic about their prospects as the corridor.

European markets have always been attractive to Indian businesses although challenges such as the difference in cultures, business practices and markets have posed a hurdle for many businesses to go the organic route in establishing a presence there. Acquisitions would have provided the best alternative but the cost would often prove prohibitive to Indian companies owing to the differences in currency values as well as Europe being considerably more expensive. What the weak Euro as well as the strengthening Rupee has done is bring down that barrier and made acquisition of existing assets in Europe more attractive. As a result more Indian businesses are looking to evaluate the best options in their target markets while the opportunity exists.

The Indian market is just as attractive for European investors largely due to its rapid growth and massive potential with a growing consumer base. While the European markets may take some time to recover, capital and cash which may have been reserved for expansion within Europe can be re-allocated into the booming Indian markets through acquisitions of assets there. This could even help offset some of losses or reduced growth rates within Europe till things pick up again. By narrowing down on the right businesses in India which can be acquired, companies in Europe make a quicker and more efficient entry into a promising economy.

It’s not often one finds a win-win situation in the midst of a rocky economic climate but the corridor for business between Europe and India through asset acquisitions could well be just that. It’s little wonder we see a strong deal flow between the two geographies and so much activity in terms of companies looking for the right assets which can help them grow. There have been cross-border acquisitions in technology, manufacturing, information technology services, health-care, pharmaceuticals, retail and more in the last two quarters alone. This is likely to continue through the next ones and we’ll see a lot more happening here soon.