Zabaniyah
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Because your tech is not good enough for developed markets. Tata for example bought jaguer to gain expertise and entry into the European market. It's a good move. The developed markets are also protected..... India is not yet capable to penetrating these markets. You will need very very deep pockets and willing to take a loss for a decade before even breaking even. See the Japanese experience. The Koreans needed state intervention and the Malaysians failed altogether. The developed markets ain't going to open their doors. Unless you have an innovative product or ability to absorb several billion initial losses you guys better stick to your country and the surrounding.
Much of what you say are true. There's also the issue of brand perception as far as Tata is concerned.
Expect flaming responses coupled with a d!ck measuring contest in 5...4...3...2...1...