INDIA Trends and Developments Contributed by: Raj Ramachandran, Kartik Jain, Mannat Nirola and Anmol Mahajan, JSA Advocates & Solicitors
signed for single entrepreneurs who seek the benefit of a corporate structure without the re - quirement of multiple shareholders, with limited liability. • Unincorporated Entities (a) Liaison office ( LO ): Suitable for market testing, representation and communication. However, commercial activities are prohibited. (b) Project office ( PO ): Preferred for execution of specific projects or contracts in India. (c) Branch office ( BO ): Suitable for foreign com - panies undertaking trading, consultancy, research, IT services and other permitted com - mercial operations. Trends and developments India’s regulatory approach in recent years has been focused on replacing older, fragmented and compli - ance-heavy legal frameworks with consolidated and modern legislation aimed at improving EODB, reduc - ing regulatory overlap and creating greater legal cer - tainty for businesses. A significant example is the noti - fication of the Labour Codes, consolidating 29 central labour laws into a simplified and modern framework. A similar reform-oriented approach is visible in the corporate and foreign exchange regulatory space. The widening of the scope of fast-track mergers, permit - ting banks and financial institutions to finance mergers and acquisitions, automatic approval of permissible cross-border guarantees complying with underly - ing FEMA requirements and capping of penalties for compounding of offences under the FEMA framework, among other changes, reflect a clear move towards procedural efficiency and reduced regulatory friction. Further, in order to attract investments, the government has introduced reforms under the Foreign Trade Policy (FTP), including permitting higher foreign investment in sectors such as insurance, banking and financial institutions, and contract manufacturing. Addition - ally, the clarification regarding beneficial ownership and the introduction of a specified approval timeline for Press Note 3 approvals in certain sectors further reflect a forward-looking policy approach aimed at enhancing regulatory certainty, improving EODB and fostering a more predictable investment environment for foreign investors.
Legislative modernisation has also been undertaken in the maritime and logistics sector. In 2025, India replaced several century-old laws with the Indian Ports Act, 2025, the Coastal Shipping Act, 2025, the Bills of Lading Act, 2025 and the Carriage of Goods by Sea Act, 2025, thereby modernising India’s port and shipping regulatory framework and strengthening legal certainty in trade and logistics operations. India’s criminal justice framework has also under - gone a significant overhaul with the enactment of the Bharatiya Nyaya Sanhita (ie, the erstwhile Indian Penal Code), 2023, the Bharatiya Nagarik Suraksha Sanhita (ie, the erstwhile Criminal Procedure Code), 2023, and the Bharatiya Sakshya Adhiniyam (ie, the erstwhile Indian Evidence Act), 2023, which replaced the colonial-era criminal laws and introduced reforms aimed at modernising criminal law, procedure and evidence. M&A in India Despite global geopolitical uncertainty, tariff-related disruptions and supply chain realignments, India has emerged as one of the most preferred investment destinations as multinational businesses continue to diversify operations under the “China Plus One” strategy. India’s expanding trade relationships and growing position within global supply chains are also contributing to increased inbound investment and cross-border transaction activity. At the same time, Indian corporates are increasingly deploying capital overseas to acquire technology, intellectual property, strategic capabilities and market access, reflecting India’s evolution from a recipient of foreign investment to an increasingly significant source of outbound M&A activity. The Indian M&A market remained active through 2025 and into 2026. While large-ticket transactions mod - erated amid global market volatility, deal volumes remained robust. Q1 2026 witnessed 271 M&A trans - actions, among the highest quarterly volumes record - ed in recent years. Domestic transactions continued to anchor overall deal activity, while outbound M&A reached record levels. The regulatory framework governing M&A transactions in India is well established. The Companies Act, 2013
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