New Delhi, Aug 12 (NationPress) The dealmaking landscape in India has demonstrated remarkable resilience in the face of global economic challenges, as the overall deal value increased by 2 percent in the first half of this year, reaching $50 billion, according to a report released on Tuesday.

Investors have favored quality and scale, leading to a 12 percent reduction in deal volume, which totaled 1,285 transactions. This trend indicates a shift towards fewer, high-value strategic investments, as highlighted by the report from Ernst & Young (EY).

When compared to the first half of 2024, the deal value in H1 2025 saw a decline of 17 percent. June emerged as the strongest month, boasting a deal value of $8.4 billion, which marked a 104 percent increase from May. Nonetheless, it recorded 136 transactions, the lowest monthly count in six months, reflecting a 46 percent year-over-year decrease.

According to Ajay Arora, Partner and National Leader, Investment Banking at EY India, “Investors are evidently gravitating towards fewer but more strategic investments. The increase in high-value deals, despite a drop in overall volume, indicates a flight to quality driven by macroeconomic concerns and an evolving regulatory landscape.”

In H1 2025, there were 10 deals exceeding a billion dollars, which is double the count from each half of 2024. The absence of marquee transactions points towards consolidation and strategic capital deployment, as per the report.

The power sector led the way in Mergers and Acquisitions (M&A) with a total deal value of $8.5 billion. Notably, renewable energy accounted for 80 percent of the power sector's total, increasing from $3.2 billion in H1 2024 to $2.8 billion in H2 2024.

India has emerged as the fourth-largest renewable energy market, attracting over $4 billion in foreign direct investment (FDI) last year.

“Driven by increasing demand, robust government support, and innovative financing, India is accelerating its energy transition with a substantial rollout of renewables and significant advancements in electric mobility, biofuels, and green hydrogen. Global investors are poised to invest over $1 trillion in this sector, presenting exciting opportunities,” stated Srishti Ahuja, Partner, Infrastructure, Investment Banking, EY India.