GLOBAL EXPANSION, MARKET SIGNALS AND DIGITAL TRANSFORMATION: EVIDENCE FROM INDIAN STEEL COMPANIES IN THE VIKSIT BHARAT 2047 FRAMEWORK
DOI:
https://doi.org/10.1956/jge.v22i3.917Keywords:
Viksit Bharat 2047, Overseas Acquisitions, Event Study Methodology, Abnormal Returns (AR) and Cumulative Abnormal Returns (CAR)Abstract
India’s Viksit Bharat 2047 aims to develop the country as a technology-driven and globally competitive country. It also highlights economic inclusion. To realize this, Indian companies have adopted the strategy of acquisitions in foreign lands to gain advanced technology, access global markets and consolidate their international position.
This paper examines the impact of foreign acquisitions announced by the major Indian steel companies like Tata Steel, JSW Steel and Jindal Steel & Power on the stock prices. Abnormal returns (AR) and cumulative abnormal returns (CAR) around the announcement dates were studied using Event Study Methodology.
Results show mixed investor response. In some cases, the market responded positively as investors believed the acquisitions would help companies to obtain technology, improve efficiency and expand globally. In other cases the market reacted negatively to concerns about high costs, financial pressure and difficulties in managing foreign operations. The study emphasizes on the importance of cross-border acquisitions in achieving the objectives of Viksit Bharat 2047. It indicates that such acquisitions can assist Indian companies in acquiring new technology, improving industrial performance and expanding their global footprint.
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