Indian Cross-Border M&A: Overcoming High Valuation Hurdles and Looking to the Future
Investing in India: Opportunities and Challenges
India has seen significant transformation since 2013, with a growing population and increased internet connectivity. The GDP has more than doubled, reaching US$3.9 trillion in 2024. Per capita income has also seen improvement, reaching US$2,700 in 2024. India’s regulatory reforms have helped it climb in the global “Ease of Doing Business” rankings to the 63rd position.
One challenge facing India is the high valuation of Indian companies, which has historically impacted cross-border M&A deals. However, recent regulatory changes and growing acceptance of Indian securities by foreign investors are paving the way for innovative deal structures. India’s commitment to achieving net-zero emissions by 2070 is another focus, with significant legislative reforms and investments in renewable energy.
The technology sector in India is booming, with multibillion-dollar deals from companies like Amazon and Apple showcasing its potential. Infrastructure investment trusts and real estate investment trusts are making foreign investment in India more attractive. When it comes time to exit investments in India, careful planning is essential to avoid pitfalls.
India has also made progress in reforming its alternative dispute resolution framework, aiming to become an international arbitration hub. Legislative reforms and the supportive stance of Indian courts are making commercial disputes easier to handle. Overall, investing in India is more attractive than ever for foreign investors, with significant opportunities waiting to be explored.
