The Government of India has taken several long strides in the past few years to develop the overall economic condition of the country and make it one of the strongest economies in the world. India is fast becoming home to startup companies focused on high growth areas such as mobility, e-commerce and other vertical specific solutions - creating new markets and driving innovation.
With the new Indian government showing signs of economic reforms and implementing new policies, the country's economy could achieve a growth rate of 5.5 per cent in 2014 as compared to 4.7 per cent last year, according to the World Bank. Furthermore, liberalisation of the economy and growing need for investment have resulted in a more investor-friendly climate in India.
Private equity (PE) deals worth US$ 526 million were sealed in August 2014, taking the tally to US$ 7.7 billion for the first eight months of 2014. Also, as per Grant Thornton, the volume of deals in the PE space increased in 2014 and the Information Technology (IT) and IT enabled Services (ITes) sector garnered the maximum number of deals.
India has emerged as one of the strongest performers in the deal-street across the world as mergers and acquisitions (M&A) of Indian corporates increased 10 per cent in the first half of 2014. Also, considering a 12-month period, the Indian market has recorded a 21 per cent rise in M&A deals compared to a 16 per cent global rise.
With the improvement in the economic scenario, there has been quite a few investments in various sectors along with M&A in India. Some of them are as follows:
The Government of India has taken several initiatives in various sectors to improve the overall economic condition in the country. Some of these are:
The Government of India has planned to set up a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) near Bina, Madhya Pradesh with an investment worth around Rs 1 trillion (US$ 16.17 billion). This would be the fifth PCPIR in the country and the first in a land locked state.
The International Monetary Fund (IMF) and the World Bank in a joint report has forecasted that India will register a 5.6 per cent growth rate this year and 6.4 per cent in 2015, due to renewed confidence in the market brought about by a series of economic reforms pursued by the government.
The amount of IT spending in India is expected to touch US$ 73.3 billion in 2015, which will be an increase of around 9.4 per cent from the 2014 forecast, as per research firm Gartner.
Also, the 'Make in India' initiative undertaken by the Government of India is likely to bring about positive economic reforms into the country as well as encourage more domestic investments in the next few years.
Exchange Rate Used: INR 1 = 0.016 as on November 27, 2014
References: Press Information Bureau (PIB), Media Reports, Department of Industrial Policy and Promotion (DIPP), Securities and Exchange Board of India (SEBI)