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India Expects Surge In Deal Activity, Tech Innovation, Green Initiatives: Khaitan & Co

The year ahead is also expected to see a wave of initial public offerings (IPOs), the emergence of the private credit market, and significant strides on tech legislations from antitrust laws to stringent action against deepfakes

India's resilience amid global uncertainties stands strong with deal activity poised for an uptick, new regulations on the anvil in digital and emerging tech, and a deeper focus on clean energy, according to “Foresight 2024” released today by Khaitan & Co, a leading full-service law firm. 

The year ahead is also expected to see a wave of initial public offerings (IPOs), the emergence of the private credit market, and significant strides on tech legislations from antitrust laws to stringent action against deepfakes. Emphasising clean energy and climate resilience, India's efforts include bolstering renewable energy, green hydrogen, and electric vehicles, along with sharper ESG regulations. 

Rabindra Jhunjhunwala, Partner, Khaitan & Co said, "2024 will be a transformative year marked by robust growth, technological leaps, and a sustainable revolution. We anticipate several notable regulations and policy reforms to come through that can boost domestic and foreign investments. The year is poised to be a catalyst, fortifying India's economic foundation, and propelling us into an era defined by innovation and progress."

Foresight 2024 is a legal and regulatory playbook comprising significant themes that are anticipated this year and outlines how new and amended regulations can enable organisations to capitalise on the unique opportunities ahead. Some of the key trends are as follows: 

India's M&A landscape to thrive despite global uncertainties:

In 2024, India's M&A sector remains resilient, backed by government reforms fostering foreign investment and domestic M&A. Key measures include streamlined regulatory approvals, sector-specific incentives, and proactive initiatives by SEBI. The year anticipates a rise in control and take-private transactions, signalling a robust and dynamic M&A environment. These efforts underline India's commitment to a favourable business climate, attracting both Indian and international business leaders.

Regulatory overhaul to boost business in India:

India remains an attractive destination for global player, with anticipated surge in foreign investments as the government plans to liberalise cross-border transactions. Further liberalisation across sectors such as pharma, food processing, and medical appliances, increased FDI limits, and relaxed conditionalities are expected to witness a substantial boost in FDI. 

Digital India Act to pave the way for innovation with stricter tech regulations:

The upcoming Digital India Act (DIA) is set to usher in stricter tech regulations ahead of India's general elections. With a proactive stance on data and platform governance, the DIA aims to address issues like deep fakes and misinformation, signalling a significant shift in India's tech regulatory landscape.

EVs, Clean Energy, and ESG to take centre stage:

India's Electric Vehicle (EV) industry continues its rapid growth, with intensified government scrutiny on EV manufacturers, pushing compliance and localisation norms. The battery manufacturing sector is expected to gain momentum with abundant lithium-ion deposits, paving the way for robust deal-making. Simultaneously, the regulatory spotlight on Environmental, Social, and Governance (ESG) practices will propel further transparency and attract global investments, redefining India's clean energy trajectory and making the nation a preferred destination for sustainable investments.

Arbitration landscape to be a game-changer in 2024:

Anticipating a surge in arbitration proceedings under the IIAC, 2024 signifies a pivotal year for institutionally administered arbitrations, promising swift dispute resolutions and reduced time-related costs. Complementing this, the Mediation Act, 2023, slated for implementation, will empower mediated settlement agreements, bolstering confidence in mediation. With imminent changes expected to minimise judicial intervention, India's arbitration regime is gearing up for a transformative and efficient year ahead.

India’s IPO frenzy to continue:

The Bombay Stock Exchange reported initial public offering (IPO) of 120 companies during the 2023 calendar year. This momentum is expected to gather further steam going into 2024. As the IPO market hots up globally with large names lining up to get listed. Many stakeholders anticipate a doubling of volume in 2024 from last year and a significant rise in the average deal value as well.


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