Overview
- Consultancy Grant Thornton found Indian companies completed 162 outbound acquisitions worth more than $18 billion in 2025, and Reserve Bank of India data put outward FDI at $48.6 billion in FY26 with April outbound flows up about 90% to $6.8 billion.
- April’s agreement by Sun Pharmaceutical to buy Organon for about $11.75 billion was the biggest foreign purchase by an Indian firm in nearly 20 years and followed major 2025 deals such as Tata Motors’ purchase of Iveco and Coforge’s acquisition of Encora.
- Dealmakers say the current wave is strategic rather than prestige‑driven, with buyers targeting technology, patents, research capacity and established distribution networks that would take years to build at home.
- Companies are being pushed overseas by a mix of strong corporate profits, weak private investment in India, a softer rupee and easier access to land, finance and operational support in markets such as the US and Europe.
- Analysts warn many transactions are cash‑heavy and carry currency, financing and integration risks that could strain balance sheets, change capital allocation decisions and draw closer regulatory or investor scrutiny.