Merger and acquisition activity in India is expected to see a significant jump and may touch $ 32 billion by the end of this year as overseas corporates, which had adopted a wait-and-watch attitude towards the country prior to elections are now more likely to seek deals.
Experts believe that foreign interest in India never really fell as multinational clients, had consistently mentioned India as their top or close to the top priority. However, over the last few years, a level of uncertainty had crept in owing to policy paralysis perception coupled with the global economic issues which resulted in companies hitting 'pause' button with regard to investments.
"In light of the success of the Modi wave that captured both the Prime Ministership and Parliament, we expect there will be significant uptick in both inbound and outbound investments," Ashok lalwani Head of Baker & McKenzie's Global India Practice said.
However, this has to be underpinned by the government eliminating some of the uncertainty that currently is in the system, lalwani added. The pace is expected to be greater for inbound deals, which have been largely pushed back for many months now for want of better clarity on the policy stance of new government.
Inbound deals is expected in sectors like industrials, infrastructure and chemicals. Buyers from the US, Europe, Japan, Middle East and potentially China would be lured by India's demand for infrastructure and growth potential.