"India targeted M&A volume totals to $2.7 billion so far this year, down 49 per cent from $5.3 billion a year ago," it said.
Meanwhile, India's share in the Asia-Pacific M&A space has also declined by two percentage points to five per cent so far this year, down from 7 per cent in 2008 in the period under review last year.
Dealogic highlighted that there was a significant fall in cross-border M&A inflow and out flow.
Cross-border M&A inflow has dropped 73 per cent to $654 million in 2009 year to date from $2.4 billion in 2008 and represents 24 per cent of total India targeted M&A activity for 2009 YTD.
Meanwhile, cross-border M&A outflow totaled to $23 million, down 99 per cent from $1.8 billion in 2008 YTD.
Besides, sponsor buyout activity into India is down significantly in 2009 YTD, down 96 per cent to $49 million.
According to another global consultancy firm Grant Thornton, the total number of M&A deals announced in January 2009 stood at 18 with a total announced value of $970.85 million against 63 deals amounting to $1.66 billion in January 2008.
"M&A activity has slowed down in January 2009 compared to January 2008 in terms of both deal value and volume. However, it is higher than the values in December 2008 and has shown a reasonable amount of traction, considering the current economic situation," Grant Thornton Partner (Specialist Advisory Services) C G Srividya said.
Though the M&A space is showing some traction in the midst of the downturn but it has also resulted in significant numbers of deals being withdrawn.
"In the wake of global economic downturn the number of withdrawn deals surged to record level in 2008 with 37 deals at $5.3 billion," Dealogic said, adding, "Two deals were withdrawn in India in 2009 so far totalling $50 million compared to eight deals at $768 million in 2008 YTD".
According to Dealogic some of the top India targeted M&A deals in 2009 so far were -- Quippo Telecom's $1.3 billion investment in Wireless Tata Telecom Infrastructure for 49 per cent stake, Societe BIC SA's acquisition of 40 per cent stake in Cello Pens & Stationery, Teletech Investments India and ETHL Global Capital's 6 per cent acquisition in Essar Oil.