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Informist, Thursday, Jun. 4, 2026

 

MUMBAI – The momentum of mergers and acquisitions globally may see some moderation in the second half of 2026 amid high government debt and worries over interest rates, given the current geopolitical scenario, global banking major Citi's Chief Executive Officer and Chair Jane Fraser said at the final day of the Citi India Conference 2026.

 

Fraser said that if the war in the Persian Gulf region is not ended soon, things will start "biting more than what they have done (already)". Markets' assumption that companies will continue doing well despite the disruptions is "a tad optimistic", she said.

 

Corporations have been a source of resilience in the global economy over the past few years, Fraser said, and their adaptability and resilience have helped them perform well. "Companies that have adjusted supply chains, that have had the balance sheet flexibility, that have made sure they have got the flexibility and diversified earnings stream... we've all learned how to be agile, not just resilient, but (to be) on the front foot," the Citi chief executive said.

 

Deal momentum globally, in part, has been driven by companies' bid to improve at scale. "When things move so fast, it's cheaper to acquire things than to try and build for yourself in many instances," Fraser said. "So I think part of that sentiment has also driven a lot of deal activity, of letting me make sure that I'm getting the assets I need."

 

According to Citi, not just India, but many countries have been worried about the same issues in recent weeks. "I think the second half could see a little bit more muted, but there's a lot of dry powder there with the sponsors," she said.

 

The global economy of late has also been rattled by the imposition of tariffs and an increasing appetite for protectionist measures across countries. These measures have prompted chatter about the potential end of globalisation. Fraser, however, said this is not true. "You (Citi) don't grow that fast if globalisation is dying, it's quite the opposite," she said. "But it is getting more complex," she added.

 

The global banking major is seeing new corridors of opportunity in regions such as Latin America and also in India. "The world's changing. It's becoming more multi-polar, it's becoming more complex," she said.

Fraser met Prime Minister Narendra Modi Wednesday and discussed investment and capital flows into India, opportunities for India's corporate sector abroad, and artificial intelligence, among other topics. Her outlook for the Indian economy on a long-term basis remains intact despite the short-term pressures.

 

Modi, during their interaction, acknowledged that not every measure taken by the government is working. "I was very happy in the discussion with Prime Minister Modi about how adamant he was, clear that there's still complexity to be addressed, adamant about continuing that drive with the same passion and determination that he has to make sure that's part of his legacy," Fraser said. "It's needed, and it will make a difference in bringing more FDI (foreign direct investment) into the country as well."  End

 

Reported by Anand JC and Aryan Khanna

Edited by Rajeev Pai

 

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