- Competitive business environment.
- Privatization agenda.
- Potential and strong services sector.
- Cheaper labor hand.
- increasing Foreign Direct Investment.
The two last items named before (cheaper labor hand and Direct investment) are those that I am going to talk about, because the cheaper labor hand has attracted many FDI to India in the recent years, consequently that FDI has influenced positively in the economy of this country.


The role of Government is very important, because it is permissive with the entry of FDI to India in the tyre sector, it does not impose any restriction, but at the same time it gives subidies to the local producers of tyres, in order to avoid the big Multinational Corporations "swallow" the small ones.
There is an importan aspect that I want to mention: culture. Because acquisitions selection decisions are generally driven by financial and strategic considerations, yet many organisational alliances fail to meet expectations because of difficulties in the acculturation process which would compromise the knowledge transfer and learning. (Salama, Holland, Viten, 2003)
In this case we encounter two different countries: France and India, it means two different cultures, and the relation between workers and managers from both countries must be good, in order to achieve the goals and to be able to transfer technology and knowledge, do not forget that value creation is one of the most important objectives in successul acquisitions too, not just to maximize profits.
"DAWN.COM Economic & Business Foreign investment plans for tyre manufacturing." DAWN.COM Home Latest News, Pakistan, World, Business, Cricket and Multimedia. N.p., n.d. Web. 24 Oct. 2010. http://72.249.57.55/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/foreign-investment-plans-for-tyre-manufacturing.
Foreign Direct Investment (FDI) Definition Economy Watch." World, US, China, India Economy, Investment, Finance, Credit Cards Economy Watch. N.p., n.d. Web. 24 Oct. 2010. http://www.economywatch.com/foreign-direct-investment/definition.html.
"Michelin to invest Rs 7,000 cr in India - The Economic Times." The Economic Times: Business News, Personal Finance, Financial News, India Stock Market Investing, Economy News, SENSEX, NIFTY, NSE, BSE Live, IPO News. N.p., n.d. Web. 24 Oct. 2010.
Salama, Alzira. Holland, Wayne. Vinten, Gerald. (2003). Challenges and opportunities in mergers and acquisitions: three international case studies- Deutch Bank - Bankers trust; British Petroleum- Amoco; Ford-Volvo. Journal of European Industrial Training. pag. 313
Singh, Kavita (2010). An Analysis of Relationship between the learning organization and the organization culture in Indian Business Oganizations. Organizations and Markets in emerging economies, Vol.1, No. 1(1). pag.144
Images taken from:
http://www.guiasenior.com/contenidos/images/Michelin-F.jpg
http://elturismologo.files.wordpress.com/2010/06/taj-mahal-agra-india.jpg
http://www.definicionabc.com/wp-content/uploads/francia.jpg