India’s economy continues to report an ongoing upward trajectory despite weathering the storm unleashed by the COVID-19 pandemic and ongoing Russia-Ukraine war. FDI inflows into India touched a new peak in FY2021-2022 at USD 83.7 billion, displaying a 1.95% increase relative to FDI inflows in FY2020-21.

Securities and Exchange Board of India (SEBI) has been particularly active; it approved several significant measures to encourage the public listing of start-ups in India. SEBI’s measures, aimed at boosting public and private markets are already proving to be effective. A sizeable amount of capital raised through public equity offerings is expected to make its way back into the start-up investing ecosystem in India. This is also synergistically aligned with the government’s vision to give a fillip to the technology sector, particularly FinTech and HealthTech.

India Inc has been busy dealmaking, vindicating the confidence in the fundamentals of the Indian economy. In the first half of 2022, 1,149 deals totaling USD 104.3 billion deal value, marks record volumes and values and indicates M&A and PE witnessing 34% and 40% growth, respectively, from the previous year.

Policymakers have exhibited willingness to liberalise the foreign investment regime across strategic sectors. This backed by a slew of regulatory reforms such as, enactment of the Arbitration and Conciliation (Amendment) Act, 2021, introduction of the Mediation Bill, 2021, enactment of the Insolvency and Bankruptcy Code (Amendment) Act, 2021, introduction of the Insolvency and Bankruptcy (Amendment) Bill, 2022, enactment of the enacted National Banking for Financing Infrastructure and Development Act, 2021, among others, serve the interests of transparency, accountability and clarity for investors and businesses alike.

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