How India made M&A easier for companies

The aspirations of a young India and increased income levels have encouraged companies to consider mergers and acquisitions (M&A) to keep up with demand.

- KARUN PRAKASH

In a world where consumer preferences change dramatically, M&As provide companies the means to remain competitive and introduce new solutions quickly.

Building scale rapidly remains a challenge for companies and inorganic growth is an immediate solution to the issue. At times, equity capital is required even to build scale organically, particularly when one looks at the high cost of borrowing in India compared to Western economies.

Recognising the need for global capital to fuel India's growth, the government has introduced regulatory changes in a number of areas to encourage cross-border investments.

Foreign direct investment continues to be liberalised with the aim of integrating companies into global value chains, encouraging investments in manufacturing and enabling technology absorption in line with the Make in India and Atmanirbhar Bharat initiatives of the government.