New Delhi, Oct 13 : The Indian startup sector saw a significant drop in deal activity in 2023 (year-to-date) compared to the same period in 2022, a report showed on Friday. Overall, there was a 39 per cent decrease in the number of deals and a 68 per cent decrease in their total values, according to Grant Thornton Bharat's 'Q3 Deal tracker Report.' This decline was particularly pronounced in the mergers and acquisitions (M&A) landscape, where values plummeted by 83 per cent this year. This steep drop can be attributed to the absence of some of the massive billion-dollar deals witnessed in the YTD period 2022, according to the report. In the private equity (PE) sector, there was a 40 per cent reduction in the number of deals and a 28 per cent decrease in their values compared to YTD 2022. The third quarter (July-September period) this year witnessed a deal volume of 302 deals with values amounting to $13.4 billion in the country. In Q3, the startup sector, along with e-commerce and IT & ITeS, led the way, accounting for 64 per cent of total deals. 'With growth-oriented policies, reduced inflation, and increased infrastructure spending, India's domestic growth is set to fuel deal activities, particularly in traditional sectors (pharmaceuticals and healthcare) and the ever-accelerating digital transformation landscape (e-commerce and IT & ITES),' said Shanthi Vijetha, Partner, Growth, Grant Thornton Bharat. The report said that India's economic prospects for 2023-24 remain upbeat, supported by growth-oriented policies, subdued inflation, and heightened infrastructure investments. /IANS