(Bloomberg) -- Natixis SA expects dealmaking activity in India to increase with more billion-dollar transactions on the horizon as its economy has entered into a “Goldilocks period.”

Strong economic growth, a young population and the government’s push on infrastructure and digitization are positive factors for dealmaking, according to Raghu Narain, head of investment banking for Asia Pacific at Natixis.

“For the global investors, India has become a very attractive investment ecosystem,” Narain said in a Bloomberg Television interview on Wednesday. “What we can expect to see is that a lot of $1 billion plus type of deal happening which obviously means that investors can write bigger equity checks and it’s a very scalable market.”

Domestic consolidation will be driven by financial services companies looking for scale and synergy, such as the $60 billion merger of HDFC Bank Ltd. and HDFC Ltd., Narain said. Sectors such as health care, energy transition and digital infrastructure including data centers are also attracting investors, he added.

Consumer sector is also drawing international investors. Abu Dhabi Investment Authority’s investment into Reliance Retail Ventures Ltd. is a “classic example” of foreign investor confidence in India, Narain said. 

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