'India among top M&A markets in emerging Asia'

India is among the top merger and acquisition (M&A) markets in emerging Asia, largely driven by favourable economic and demographic conditions and an encouraging regulatory regime, says a report.

According to a joint report by global risk mitigation firm Kroll and deal tracking firm Mergermarket, in the first half of 2016, 82 deals worth close to USD 9 billion were announced, "putting India on track for another banner year" of inbound investment.

India attracted 6 percent of all US outbound M&A transactions in 2015, surpassing the 2 percent of outbound M&A directed at China that year. So far in 2016, India has continued to attract US interest, with USD 3.1 billion through 27 deals compared to similar US investment in China at USD 1.3 billion and 13 deals.

"General sentiment among foreign investors for Indian investment opportunities remains strong, creating a bright outlook for inbound M&A through the rest of this year and into 2017," the report said.

The report, however, noted that as the pipeline of deals grows, foreign investors are expected to deploy due diligence process which is rigorous, comprehensive and truly independent -- one that will assist them in making decisions with confidence and to be in a better position to protect such investments, says Kroll Managing Director and Head of South Asia Reshmi Khurana.

The report further said, technology, media and telecommunications companies accounted for 26 percent of deal value and 22 percent of deal volume since 2011. The country's e-commerce market had generated maximum interest from investors during the said period.

Inbound M&A in the consumer sector also saw substantial activity led by demographic factors such as the emergence of an increasingly young and working population and rapid urbanisation.

The industrial and manufacturing space has also shown promise, courting 9 percent of deal value and 22 percent of deal volume since 2011, on the heels of Prime Minister Modi's 'Make in India' campaign to attract further overseas investment.