The biggest risk when it comes to investing in India is the
enforcement of contracts, according to panelists at this
IFLR India M&A Forum in Mumbai.
The first half of this year saw an increase in M&A
private equity (PE) transactions in India in terms of deal
value compared to the first half of 2015. Specifically, the
amount of capital generated by these transactions combined
jumped to $21.8 billion from the $21.1 billion record in the
same period last year.
But panelists argued that the lack of legal recourse onshore
to facilitate the enforcement of rights by foreign and domestic
investors alike continue to pose a stumbling block to foreign
direct investment (FDI). This is reflected in the World
Bank’s latest economic rankings, which ranks the
country 178th in the world for the enforcement of contracts,
only eleven places higher than the...