Mergers and acquisitions (M&A) in India are expected to continue this year, driven by domestic consolidation, market share expansion and entry into new markets, according to a report.

According to EY’s 17th Global Capital Confidence Barometer (India), companies were embracing the ‘ongoing digital evolution’ and adopting an inorganic route to growth amid a ‘supportive economy and easing credit availability’.

“Despite dynamic global geopolitical conditions, Indian corporates are positive on the domestic deal market on the back of a stable economy, positive deal market fundamentals and a promising deal pipeline,” said Amit Khandelwal, managing partner, Transaction Advisory Services, EY. The year 2017 recorded 1,011 deals with a disclosed deal value of $40,961 million.

Mr. Khandelwal noted that the Centre’s focus on reforms, along with resilient capital markets and a favourable credit environment, should stimulate investments and encourage firms to actively plan their acquisition strategy.

Indian executives remain positive on M&A prospects with 55% expecting their firms to actively pursue M&A in the next 12 months.