India’s M&A Hits Lowest Point Since 2017: $56.8 Billion in 2024, Tech S

• Lowest Level Since 2017: India’s M&A activity hit $56.8 billion in 2024, the lowest level since 2017, reflecting global economic challenges.
• Sector Breakdown: TMT deals accounted for 30% ($16.8 billion), financials saw a 73% decline to $7.7 billion, and industrials dropped 19% to $7.6 billion.
• Historical Context: After pandemic-induced lows in 2020, India’s M&A landscape rebounded but is now facing a more pronounced decline mirroring global trends.
• Key Drivers: High interest rates, macroeconomic uncertainty, geopolitical risks, and regulatory scrutiny have impacted investor confidence and deal-making.
• Sector Resilience: While financials struggled, technology deals increased 22%, and emerging sectors like renewable energy and EVs show promise.
• Corporate Strategy Shift: The decline may lead businesses to focus more on organic growth and strategic partnerships over M&A deals.
• Expert Outlook: Analysts predict the decline is temporary, citing India’s strong domestic economy and potential for policy clarity post-elections.
• Government Role: Interventions like relaxing regulations for private equity and venture capital could help revive the M&A landscape.
• Cautious Optimism: Despite the current downturn, experts anticipate a rebound in M&A activity driven by rising investor confidence and macroeconomic trends.
• Future Potential: India’s resilient economy amidst challenges underscores its attractiveness for sustained growth and foreign investment in the long run.

References

• The Hindu Businessline
• Deloitte
• Business Standard
• Deloitte (PDF)

• Daily M&A/PE News In 5 Min

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