In 2025, Indian companies ramped up their foreign acquisitions, spending over $18 billion on outbound deals, signaling a shift toward international expansion amid subdued domestic growth. This surge marks a sharp increase compared to the previous year and features major purchases across diverse sectors.
Among the most notable transactions, Sun Pharmaceuticals agreed to acquire Organon & Co., a New York-listed women’s health and biosimilars company, for $11.75 billion—the largest Indian overseas acquisition in nearly 20 years. Other significant deals include Tata Motors’ $4.4 billion purchase of the Italian vehicle manufacturer Iveco and Coforge’s $2.35 billion acquisition of Silicon Valley’s AI firm Encora. Additionally, the Bajaj Group acquired a 23% stake in the global insurance giant Allianz SE earlier this year, exemplifying Indian firms’ broadening international reach.
This trend reflects more than just ambition for global assets, unlike two decades ago when acquisitions were often about prestige—as seen with Tata Group’s purchase of Jaguar Land Rover and Corus Steel. Today, firms pursue overseas targets for strategic benefits such as operational efficiency, technological capabilities, and diversification. Experts suggest that with foreign portfolio investment leaving India rapidly, and foreign direct investment slowing, companies are seeking more stable business environments and growth opportunities abroad.
India’s domestic private sector continues to disappoint in terms of capital formation despite government incentives like tax reductions and production-linked subsidies. Corporate profits for India’s top companies have risen post-pandemic, but investment rates remain weak. The government has repeatedly urged businesses to invest within India, yet many see better conditions elsewhere. For instance, some Indian companies prefer establishing greenfield factories in the US where industrial land and working capital access are more favorable than at home.
Analysts note that this outbound acquisition wave is not limited to large conglomerates. Mid-sized firms are also increasingly pursuing foreign assets to bolster capabilities and global footprints. The trend underscores Indian corporations’ recalibration of priorities in response to an evolving economic landscape marked by internal challenges and the lure of international markets.