India's Deals Market: 2022 Overview

The publication "Deals in India: Annual Review 2022" by PwC India offers a comprehensive analysis of the Indian deals market in the context of the challenging global economic landscape. In the early months of 2022, deal activity in India mirrored the positive trends observed in 2021. However, as the year progressed, the market faced formidable headwinds, including inflationary risks, rising interest rates, and geopolitical tensions. Despite these challenges, India exhibited remarkable resilience, standing out from many major economies worldwide. While deal activity in 2022 dipped compared to the previous year, it still surpassed pre-pandemic levels, indicating a stable deals market.

Mergers and acquisitions (M&A) played a significant role, contributing to a record high deal value of USD 107 billion, driven by more than 20 large transactions. Notably, the M&A landscape was shaped by consolidations and entries into new sectors, with the banking, aviation, and cement industries witnessing some of the largest-ever transactions. Private equity (PE) investments totaled USD 52 billion, although they were 22% lower than 2021, they remained higher than the preceding three years.

Looking ahead, the report anticipates a cautious approach from stakeholders in the first two quarters of 2023, driven by a realistic assessment of the impact of macroeconomic factors. A more favourable deal environment, supported by effective reforms and improved governance, is expected to enhance investor sentiment and attract investments, shaping the trajectory of the Indian deals market in the coming years.

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