Election results brighten prospects for M&A in 2019

By Iqbal Khan, Shardul Amarchand Mangaldas & Co
0
1746
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

Even with all the euphoria around India’s elections results, the country’s key economic indicators remain depressed. If the economists are right, one of Asia’s largest economies seems to be losing its glitter and sheen. Sales across consumer goods, autos and tractors have slumped. The index of industrial production is stagnant and unemployment rate is above 7%. India’s economy grew at a six-quarter low of 6.6% in the fourth quarter of 2018. Gross domestic product (GDP) growth for FY19 is pegged at between 7.3% and 7.5%, depending on whose estimates you rely on.

Election results
Iqbal Khan
Partner
Shardul Amarchand Mangaldas & Co

But even with all the lacklustre economic data, India remains a major bright spot in an otherwise uncertain global economic narrative. There is a heavy burden of expectations from the new government’s budget to be presented in July, with the hope, that a bold set of reforms will help to kick-start private consumption, rejuvenate the rural economy and accelerate public expenditure in areas like infrastructure development.

Even as we anticipate what the inaugural budget will hold, the market for private equity (PE) investments in India, remains bright. 2018 was a watershed year for PE and venture capital (VC) firms in India with investments peaking at US$35.8 billion and exits at US$26 billion. Fundraising by PE/VCs rose by nearly 40% year on year, adding to the vast reserves of dry powder already available in the market.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

Iqbal Khan is a senior partner at Shardul Amarchand Mangaldas & Co.

election results

Shardul Amarchand Mangaldas & Co
Express Towers, 23rd Floor
Nariman Point
Mumbai – 400 021
Executive Chairman: Shardul Shroff
Managing Partner Mumbai: Akshay Chudasama
Contact details
Tel: +91 22 4933 5555
Email: Connect@AMSShardul.com
New Delhi | Mumbai | Gurugram | Chennai | Bengaluru | Ahmedabad | Kolkata

 

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link