India continues to be a compelling destination for investors, supported by favorable demographics, deepening capital markets, and ongoing regulatory reforms, says Zia Mody, one of India’s top corporate lawyers.
In an exclusive interview with ETLegalworld, Mody tempered hype around India being the “hottest” destination but stressed its undeniable appeal amid global investors shifting focus from China to India.
Highlighting India’s openness, Mody referenced significant sectoral liberalization such as 100% FDI in insurance and rising banking caps, combined with a stable macroeconomic framework. Foreign investors appreciate the regulatory dialogue, which, although not always agreeable, remains open and transparent.
Addressing emerging financial structures, Mody discussed the potential of Special Purpose Acquisition Companies (SPACs) operating out of GIFT City. While the platform offers tax and regulatory benefits, she cautioned that the SPAC model in India is in its infancy. “The ecosystem needs scale, and the next two to three years will be crucial,” she said, citing early deals such as the Air India trainer aircraft acquisition through GIFT City.
Private equity investors are increasingly seeking control stakes rather than minority positions, bringing global expertise that helps Indian companies integrate into international value chains. Despite a subdued IPO market, PE-to-PE exits have grown, and funds remain hopeful of public listings.
Mody concluded on a positive note, expressing confidence that continued regulatory clarity and sectoral growth will maintain India’s attractiveness for global investors in the coming years.
