India went against the global trend of fewer deals by having its busiest year for mergers and acquisitions (M&A) with about $191 billion worth of deals in 2022.
JPMorgan Chase & Co. says that India’s dealmakers can expect another strong year of mergers and acquisitions (M&A) because investors and businesses are diversifying into the South Asian country. Nitin Maheshwari, head of M&A for JPMorgan in India, says that even though it is unlikely that India will experience such a high level of M&A activity again this year, there will still be a sizable amount of deal flow to keep bankers busy. He says that this is because of a number of things, such as the fierce competition on the capital markets of China, Australia, and Japan. Despite recent issues at Gautam Adani’s business empire undermining its appeal, India’s rapidly expanding economy has emerged as a major bet for international financial firms.
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China, on the other hand, has a hard time attracting capital because of its long-term COVID Zero policy and crackdown on private business, including its biggest tech companies. This has slowed down the economy in recent years. Global private equity firms have been working on ways to participate in deals while in Japan. It is anticipated that India’s M&A activity will remain robust due to increased capital inflows and several favorable trends.
