In the short to medium term, the European economic crisis is bound to impact the business prospects and the investment plans of Indian companies doing business in the region. As the survey indicates, despite the number of policy and regulatory impediments, India's outbound investments in the EU may see smaller deals but the activity will continue. A number of Indian companies are viewing the current economic crisis as an opportunity to enhance their investments. To maximize their benefits and to alleviate their business losses in terms of reduced demands in European markets, Indian manufacturers are aggressively pursuing new business plans. This includes increased imports of high-end machinery and technology from Europe due to highly competitive prices being offered by European exporters. This could have long-term spin-offs for Indian industry in terms of added capacities and reduced capital expenditures.
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