The findings are a part of EY's latest Capital Confidence Barometer report, based on a survey of about 1,600 senior executives from large companies across 70 countries. It aims to gauge corporate confidence in the economic outlook and understand boardroom priorities, among others.

With respect to India, sectors with the highest level of anticipated deal-making include automotive, technology, life sciences and consumer products.

About 38 per cent of the respondents felt that M&A volumes in India are expected to improve over the next 12 months.

"Indian companies also reflect a concerted focus on job creation as well as optimising operations to deliver cost reduction," the report said.

Amit Khandelwal, who is National Leader & Partner (Transaction Advisory Services) at EY, said the investor outlook for India remains positive, despite the challenges the country's economy has faced in the recent past.

On the other hand, the report said that Indian corporate entities have started looking at developed markets for making acquisitions.

"After two years, European countries (UK and Germany) have made a comeback on the potential investment destinations list for Indian companies," it added.

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