Having rung in the New Year with two major acquisitions in the metals space, India Inc is set to execute more such deals, albeit in automotive, pharma and IT sectors, with companies in Europe being the targets.

"European pharmaceutical, automotive and IT services companies will be prime targets for takeovers in the next year. Indian companies in these sectors have reached critical mass and are set for lift off," IndusView, an India-focused cross-border advisory firm, said.

It said that India Inc's global expansion, particularly in Europe this year, is expected in the backdrop of growth projections for pharma and IT industries, which are set to cross over $27.5 billion. The growth in automotive sector could be doubled to $18.7 billion by 2009, analysts say.

"We'll no doubt see a global spotlight on these industries as Indian firms make headline-grabbing overseas acquisitions," it added.

The pharmaceutical industry is expected to grow by more than 13 per cent to $6.5 billion in 2007 and reach a market size of $9.5 billion by 2010, surpassing the growth trends of 9.5 per cent recorded over the last five years.

"The progressive trend in this sector is expected to continue, due to increased integration with global trade. India started to recognise global patents and the growing significance in terms of contract research and clinical trials," IndusView chairman Bundeep Singh Rangar said.

The ability to produce high quality, low cost drugs will see India's exports spike over the coming months, he added.

Another significant growth would be in the automotive industry, with the auto component industry likely to almost double to $18.7 billion by 2009 and reach about $40 billion by 2014.

General Motors, the world's largest automaker, will ship parts worth $1 billion from India to its global production units by 2010 boosting the sector's growth.

The advisory firm also forecast a continued growth in the IT services sector. It expects the software and related services to touch $21 billion in 2007, a growth of 21.6 per cent and the business process outsourcing is also expected to increase by 34 per cent to reach at $12.6 billion in 2007.

"India has experienced some significant milestones this year, notwithstanding the launch of its space programme aiming to compete with other global powers," Rangar added.

India's multinational companies will continue to make huge strides. However, it still has a long way to go in the outsourcing/off-shoring world as the country's attractiveness increases on account of skilled workforce, lower costs, industry best-practice and increasing portability of IT and back-office work.