This study brings together unique insights and experiences of global acquirers who have successfully conducted M&A1 in India over the last six years. In doing so, we present the perspectives of a multinational acquirer on doing deals in India, including what they have learned from the process and their effective practices that resulted in a successful deal.
For the past two decades, India has been one of the world’s fastest growing economies. The economic liberalization that started in 1991 charted a transformative course for the country, converting it from a low-consumption agriculture-dependent economy to one of the world’s largest marketplaces.
Along this journey, the country has seen two major global economic crises, a succession of coalition governments, an IT and outsourcing revolution and further fragmentation of its political landscape. But throughout this period, India has remained open for business and has offered opportunities to global companies that have bet on its growth story.
India has several strengths: favorable demographics, high levels of tertiary education, rising per capita incomes, English proficiency and a flourishing democracy.
At the same time there are also challenges: integration with the global economy has made India more susceptible to systemic financial shocks, its government needs to deliver equitable growth for its vast population while keeping inflation under control, it needs effective measures to manage corruption and put in place policies to protect local business while attracting overseas capital.
All these factors make India an exciting and challenging place to do business. For global companies coming into India, the learning curve can be very steep and mistakes made along the way can be costly.
© 2021 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in China, KPMG, a Macau partnership and KPMG, a Hong Kong partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.