In brief
India’s big spenders are turning to the West, making their most expensive overseas deals in two decades. Sun Pharmaceuticals’ $11.7 bn buy‑out of Organon & Co., Tata Motors’ $4.4 bn purchase of Iveco, and Coforge’s $2.35 bn purchase of Encora illustrate a surge in outbound deals. Grant Thornton data shows 162 Indian companies spent $18 bn on acquisitions in 2025 – a 34 % jump on 2024 – and experts expect that trend to continue as firms chase technology, brand, and supply‑chain resilience beyond a sluggish domestic market. While many past acquisitions (e.g., Tata Steel’s Corus deal) have proved costly, investors are optimistic that new trade agreements with the UK, Europe and Australia will fuel a “deluge” of Indian-backed investments abroad. Yet analysts note that large deals are still all‑cash and that India’s economic outlook remains uncertain amid capital outflows, weak manufacturing demand and geopolitical tensions.
India’s most prominent firms are expanding outward, with Sun Pharmaceuticals paying $11.75 bn for the New York‑listed Organon & Co., a deal that marks the biggest overseas acquisition by an Indian company in roughly 20 years. The move follows a string of high‑profile cross‑border deals – from Tata Motors’ $4.4 bn purchase of Italian vehicle maker Iveco to Cohere’s $2.35 bn takeover of Silicon Valley’s Encora, and the Bajaj Group’s stake in Allianz – illustrating a growing trend of outbound M&A.According to Grant Thornton, 162 Indian companies spent more than $18 bn on global acquisitions in 2025, up 34 % from the previous year. “We could cross $15 bn in deal value in just the first half of this year,” said partner Sumeet Abrol. This surge reflects a shift in Indian corporate strategy: companies now seek global assets not just as a status symbol but for strategic technology, brand, and distribution access, as well as to hedge supply‑chain risks.While India’s domestic market remains weak – with a decline in foreign portfolio inflows, a slowdown in FDI and modest private‑sector investment despite tax incentives – many firms see the West as a more attractive growth arena. Investors note strong balance sheets and easier access to global financing. Analysts warn that the past, such as Tata Steel’s long‑standing Corus debt, has taught the need for caution, but the new boom is fueled by expectations of free‑trade agreements with the UK and Europe.Overall, the trend shows that Indian companies will stay opportunistic abroad, and perhaps more cautious at home, in a landscape where rupee volatility and geopolitical tensions loom large. The long‑term trajectory of outbound deals appears clear, even if the exact volume of next‑year acquisitions remains uncertain.}
