M&A Transactions| Notable Structuring Considerations

1. INTRODUCTION

As one of the fastest growing economies in the world, India attracted a total foreign direct investment ("FDI") inflow of USD 919 billion during April 2000 to March 2023 with an FDI inflow of USD 70.97 billion in the financial year 2022-2023¹. Other than a very limited set of sectors, 100% FDI is permitted under the automatic route. As a result of major FDI policy reforms and sector specific policies and incentives, there has been a significant boost in 'mergers and acquisitions' ("M&A") being undertaken in the jurisdiction. While the Indian corporate law regime provides for a mechanism to undertake M&A transactions through court driven streamlined processes, usually parties enter into contractual arrangements for consummation of M&A transactions.