In the first six months of 2014, mergers and acquisitions deals worth USD 23 billion took place, while the value in the same period in the previous year was USD 17.6 billion.
The number of M&A deals was 560, as against 460 in the year-ago period, said Grant Thornton Deal Tracker.
"With the new government in place and the (2014-15) Budget, the business optimism is high for corporate India and this is demonstrated through the increasing M&A and PE deal action in first six months of 2014," Grant Thornton India Partner Raja Lahiri said.
"We saw USD 23 billion worth of M&A and PE deals (560 deals)in the first half of 2014, as compared to USD 17.6 billion from 460 deals first half of 2013. This reflects 31 percent growth in value terms and 22 percent in volume terms," he added.
The top deal first half of this year has been Sun Pharma's acquisition of Ranbaxy.
Lahiri noted that sectors like infrastructure, energy, consumer and financial services are expected to see renewed deal activity.
"High governance standards have fetched premium pricing on deals and it is imperative for corporate India to drive governance standards, some of which are covered by the new Companies Act," he added.
However, given the complexities of regulations as well as some recent corporate governance issues, robust due diligence is the need of the hour, he suggested.
"We expect valuations to go up given the renewed business sentiments which in our view, would be both a challenge and an opportunity for dealmakers to close deals in 2014," he said.