INDIA Trends and Developments Contributed by: Arvind Sharma, Ajoy Roy, Sanjiv Malhotra, Shahana Chatterji and J.V. Abhay, Shardul Amarchand Mangaldas & Co.
Shardul Amarchand Mangaldas & Co Amarchand Towers 216 Okhla Industrial Estate Phase III, New Delhi 110 020 India Tel: +91 11 4159 0700 +91 11 4060 6060 Email: shivam2@AMSShardul.com Web: amsshardul.com India’s Investment Boom India has firmly established itself as a premier global investment destination, underpinned by a series of progressive economic reforms, a thriv - ing domestic market and substantial infrastruc - ture advancements. The year 2024 was particu - larly noteworthy, witnessing a record-breaking 2,186 deals with a total value of USD116 bil - lion. This represented a remarkable 76% surge in deal values and a 33% rise in deal volumes compared to the previous year. Mergers and acquisitions reached unprecedented levels, with 683 deals amounting to USD44.1 billion, setting a new benchmark for deal volume. The private equity sector also flourished, recording 1,298 deals valued at USD30.9 billion – a 24% increase in volume and a 13% rise in value year-on-year. Looking ahead to 2025, the momentum is expect - ed to continue, with a pronounced uptick in both strategic and financial investments. This growth is largely fuelled by India’s ambitious energy transi - tion targets and rapid digitalisation. Venture cap - ital and private equity investments are thriving, particularly within India’s vibrant start-up ecosys - tem, now recognised as one of the largest in the world. The foreign direct investment (FDI) regime remains highly liberalised, with most sectors –
including manufacturing, infrastructure, fintech and renewable energy – permitting 100% foreign ownership under the automatic route. The government has also rolled out targeted investment policies in key sectors such as sem - iconductors, defence, pharmaceuticals, and artificial intelligence, further integrating India into the global economy. The production-linked incentive (PLI) schemes continue to transform the industrial landscape, offering generous fiscal incentives across 14 high-growth sectors. Background and Business Environment India’s business environment in 2025 is charac - terised by robust economic recovery, comprehen - sive regulatory reforms and a more open market. The dispute resolution framework has been signif - icantly strengthened, with the adoption of alterna - tive dispute resolution mechanisms, streamlined insolvency processes and reforms that favour arbitration. The Insolvency and Bankruptcy Code (IBC) has notably improved asset recovery rates, making the resolution process more efficient and attractive for investors. India’s arbitration ecosys - tem is evolving into a global hub, supported by international investment treaties and a judiciary that is increasingly supportive of enforcement.
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