The total value of Indian M&A almost halved last year, dropping dramatically from $70 billion (£49 billion) in 2007 to $42 billion in 2008, according to India Watch, the quarterly review by business and financial adviser Grant Thornton.

The total value of Indian M&A almost halved last year, dropping dramatically from $70 billion (£49 billion) in 2007 to $42 billion in 2008, according to India Watch, the quarterly review by business and financial adviser Grant Thornton.

Alongside the 41 per cent plunge in deal values between 2007 and 2008, the review confirms that last year saw more billion-dollar Indian M&A deals than the previous 12 months.

Anuj Chande, head of Grant Thornton’s South Asia Group, commented: “In 2009, we see some encouraging prospects for Indian companies, which have generally remained cash rich.”

Chande suggests that Indian corporates are set to benefit from the global drop in valuations. He said: “I expect to see an increase in takeovers of UK targets by Indian companies when valuations drop further as the recession bites in the UK.”

Grant Thornton’s findings also reveal that Indian ventures are particularly keen on acquiring well-known brands and, as a result of this phenomenon, the UK has been the most favoured target country for India’s outbound activity – receiving a total investment value of more than $6.6 billion.

Recent Indian transactions include Oil & Natural Gas Corp Videsh’s acquisition of UK-based Imperial Energy for some $2.8 billion in August, preceded in March by the Jaguar Land Rover acquisition completed by Tata Motors for $2.3 billion.