INDIA'S DEAL VOLUMES DROP, BIG-TICKET TRANSACTIONS BOOST VALUE

The impact of the global economic slowdown is being felt in the deal activity in India with deal-making in India experiencing a decline of 46 per cent in deal volumes compared to July 2022.

- NIVEDITA MUKHERJEE

However, the market surged with a 58 per cent increase in deal values in July 2023, with a record 95 deals amounting to USD 3.1 billion fuelled by big-ticket transactions and reflecting what Grant Thornton Bharat describes as calculated strategy in the business world. The catalyst for this growth was the emergence of nine big-ticket transactions valued over USD 100 million, aggregating an impressive USD 2.1 billion.

The drop in overall deal volumes in July 2023 can largely be attributed to a significant decrease in private equity investments. The tech-dominated sectors, such as start-ups, e-commerce and IT continued to drive deal volumes. India’s attractiveness as a destination for deal-making and investments is expected to persist and H2 2023 is likely to witness improvement in deal activity, despite global macroeconomic conditions. Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat observes the impact of the global economic slowdown being felt in the deal activity in India as it has been subdued since the beginning of the year compared to 2022. While the cross-border transactions propelled the surge in total deal values, the carefulness in private equity investment caused a reduction in overall volumes. That apart, “India’s attractiveness as a destination for deal-making and investments is expected to persist and the second half of 2023 will witness improvement in deal activity, despite the global macroeconomic conditions,” says Vijetha.