Global investors and companies continue to believe in the India growth story as interest from international firms acquiring domestic businesses remained largely robust in 2011,a year marked by economic turmoil and market meltdown,according to experts.
“It is interesting to note that while overall cross-border M&A activity in 2011 came down by 43 per cent,from USD 47 billion in 2010 to USD 27 billion in 2011,interest from global firms acquiring domestic (Indian) businesses continued to remain robust,falling only by 11 per cent,from USD 18 billion in 2010 to USD 16 billion in 2011,” said Gaurav Khungar,MD and Head – Corporate Finance India,Religare Capital Markets.
This shows that global investors and companies continue to hold on to the India growth story,said Khungar,speaking at a seminar on ‘Mergers & Acquisitions – The Way Forward’,organised by Dun & Bradstreet here.
Highlighting the opportunities India has to offer pertaining to M&As,he said,”The India growth story in 2011 was impacted due to high inflation,high interest rates and the global economic turmoil.
“Policy paralysis,lack of reforms and scandals further dented investor confidence. However,the India macroeconomic consumption story continues to remain intact.”
With 2012 starting on a promising note in terms of capital markets recovery,additional moves towards easing liquidity backed by steady slew of anticipated reforms will reaffirm India’s position as a high growth and high priority investment destination for corporates as well as private equity investors in 2012,Khungar maintained.