India is expected to maintain its position as the world’s fastest growing major economy in
2016 as per a recent report by The World Bank. The Bank predicts the Gross Domestic
Product (GDP) to grow at 7.5 percent for the current fiscal, aided by public investments,
better infrastructure support, and greater ease of doing business. Another key factor is the
re-emergence of a single party narrative as witnessed in the last general elections, which is
expected to provide enough muscle power to the government to carry out the necessary
reforms needed to bring the economy to a high growth trajectory. Additionally, the dip in
the commodity prices, particularly that of crude oil, is acting as a boon for the central bank
in taming inflation and encouraging growth at the same time.
Strong economic growth, access to clean energy, and increased emphasis on manufacturing
through ‘Make in India’ will raise disposable income and consumption. Also, the Digital
India initiative is expected to contribute significantly to the economy in terms of digital
literacy. The drop in oil prices has allowed the government to gradually phase out
subsidies, and free diesel prices. On the other hand, the introduction of DBT has allowed
effective rationing of such subsidies.
The economy has grown significantly in the last few years, growing by 7.3 percent in FY
2015 as compared to 6.9% in FY2014. The economy is estimated to be at INR 130 trillion
in 2014 against INR 119 trillion in 2013.
With such promising numbers, the M&A space has been flourishing with deals worth USD
