India clocks 12 pc rise in deal volume in Jan-Oct, China sees 23 pc decline

New Delhi (The Uttam Hindu): India saw 11.9 per cent increase in deal volume (year-on-year) in the January-October period, bucking the overall trend in the Asia-Pacific region, a new report has said. On the other hand, China experienced YoY decline in deal volume by 22.9 per cent during the period, according to GlobalData, a leading data and analytics company. A total of 11,808 deals (mergers and acquisitions, private equity and venture financing deals) were announced in the Asia-Pacific (APAC) region during January to October 2024, which was a year-on-year (YoY) decline of 4.8 per cent, compared to the 12,406 deals announced during the same period in 2023.

An analysis revealed that during January-October, the number of private equity and venture financing deals declined by 16.3 per cent and 10 per cent, respectively. Meanwhile, the M&A deals volume experienced a marginal YoY improvement during the review period. According to Aurojyoti Bose, lead analyst at GlobalData, the decline in deal activity in APAC was in line with the global trend wherein all the regions experienced fall in deal volume.

However, the APAC region showcased relatively better performance and experienced only single digit decline whereas most of the other regions experienced double-digit declines, Bose mentioned. “This could be attributed to the improvement in deal activity experienced in some of the APAC countries, like India,” the report said, adding that this has helped in minimising the impact of decline experienced in other countries within the region. Meanwhile, Singapore, Malaysia, Hong Kong and Indonesia experienced YoY decline in deal volume by 17.6 per cent, 14.4 per cent, 13.9 per cent and 33 per cent, respectively, during the review period. According to another report that came out in October, the mergers and acquisitions deal activity in value in India surged 66 per cent in the first nine months this year, outpacing 10 per cent growth globally and 5 per cent decrease in the Asia-Pacific region overall.

The M&A activity in India has been strong in 2024, bucking the trend in the other Asia-Pacific markets, according to a global report from Boston Consulting Group (BCG). “This highlights India’s unique resilience and appeal. Sectors like technology, media, industrials and healthcare have been key drivers of large deals, capitalising on the ‘Make in India’ initiative,” said Dhruv Shah, Managing Director and Partner, BCG.