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Indian Firms Expand Overseas Deals as Overall M&A Slows
Indian companies made more expensive purchases in other countries during the first seven months of 2026.
They spent $8.8 billion abroad, even though they completed fewer overseas deals.
Foreign companies, however, bought much less from India.
Indian companies also made fewer purchases inside India.
The biggest reasons for buying abroad were improving supply chains, reaching new customers and obtaining advanced technology.
Some IT companies bought AI skills instead of building those skills themselves.
Overall, the value of Indian mergers and acquisitions changed only slightly because large deals offset many smaller ones.
High stock-market prices, wars, tariffs and a weaker rupee made some deals harder.
The Boston Consulting Group said investors appeared to favor companies that made carefully chosen deals.
Outbound deal value by Indian strategic buyers rose 76% to $8.8 billion in January-July 2026, although deal count fell 19% to 92.
Inbound deal value dropped 58% to $2.7 billion, while domestic deal value declined 14% to $10.1 billion.
Indian M&A value was nearly flat overall, falling 2% as deal volume dropped about 20%, broadly matching the global slowdown.
Companies are pursuing overseas supply-chain expansion, market access and capabilities such as AI-enabled IT services.
Fewer but larger transactions dominated, while valuations, geopolitical uncertainty and rupee depreciation discouraged smaller deals.
- Who
- Indian companies, foreign acquirers, domestic buyers and investors, according to a Boston Consulting Group report.
- What
- Indian outbound M&A value increased while inbound and domestic deal values declined, leaving overall Indian M&A value nearly unchanged.
- Where
- The activity involved Indian companies buying targets abroad, foreign companies buying Indian targets and domestic transactions within India.
- When
- During the first seven months of 2026; the report was released on Monday.
- Why
- Indian firms sought supply-chain expansion, access to established markets and capabilities such as AI-enabled IT services, while broader deal activity was constrained by valuations and uncertainty.
Key facts
- Outbound deal value
- $8.8 billion, up 76% from $5 billion a year earlier.
- Outbound deal count
- 92 deals, down 19% year over year.
- Inbound deal value
- $2.7 billion, down 58%.
- Domestic deal value
- $10.1 billion, down 14%.
- Overall Indian M&A value
- Down 2%, while deal volume declined by roughly 20%.
- Large-deal concentration
- Deals above $1 billion represented half of Indian deal value, compared with 34% a year earlier.
- India-focused fund dry powder
- More than $20 billion, according to Preqin data cited by BCG.
- Shareholder returns
- M&A announcements by listed companies produced a median 30-day relative return of 3.7% this year, versus -0.4% in 2024 and -2.7% in 2025.
Quotes
Kanchan Samtani
Managing director and senior partner at Boston Consulting Group
“Volumes have fallen while the market is rewarding those that still transact with conviction. This suggests boardrooms should keep their M&A engines always on and reconsider how and when they choose to tap these markets, rather than pausing until sentiment turns”
financialexpress.com
“The Indian outbound story isn’t just the large conglomerates anymore. We are seeing mid-sized companies buy capabilities and market access abroad and that is a healthy sign on confidence”
financialexpress.com
Sources
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