The number and value of M&A deals targeting Indian companies have more than doubled in 2010 compared to the previous year.

In the first three quarters of 2010 there were 500 M&A transactions involving Indian targets, compared to 213 in the same period last year.

The total value of these transactions rose to $42.2 billion (£26.8 million) from $8.1 billion in the first three quarters of 2009, according to Grant Thornton’s quarterly India Watch report.

Anuj Chande, head of South Asia Group at Grant Thornton UK, says: ‘Corporate India is gripped by a frenzy of takeovers as local businesses rush to consolidate their position in the booming economy. The total value of Indian M&A deals has increased five-fold, while the number of deals has doubled compared to the first three quarters of 2009.’

The combined value of domestic deals in India for the first three quarters of the year was $17.2 billion. In the year to date, Indian firms also invested $18.5 billion in 144 M&A deals involving foreign targets, an increase from $567 million for the same period in 2009.

Chande adds: ‘Indian corporations are brimming with confidence and their strong balance sheets give them access to acquisition finance. Domestic deals make up the lion’s share of Indian M&A, while the soaring value of Indian M&A investments abroad dwarfs the value of inbound investments.’