Indian Firms Step Up Global Expansion Through Overseas Acquisitions

Indian companies are increasingly turning to international markets for expansion opportunities, with outbound acquisitions witnessing strong growth in 2025 amid changing economic conditions and evolving business strategies.

In late April, Sun Pharmaceuticals agreed to pay $11.75 billion (£8.59 billion) to acquire New York-listed women's health and biosimilars firm Organon & Co.

The transaction marked the biggest overseas acquisition by an Indian company in nearly two decades and added to a series of major international deals announced by Indian firms in recent months.

Among other notable transactions, Tata Motors acquired Turin-based vehicle maker Iveco for $4.4 billion, while IT company Coforge purchased Silicon Valley-based AI firm Encora for $2.35 billion. The Bajaj Group also acquired a 23% stake in global insurance company Allianz SE earlier in 2025.

Outbound Deal Activity Sees Strong Growth

According to consultancy Grant Thornton, 162 Indian companies spent more than $18 billion on outbound acquisitions in 2025, representing a 34% increase compared to the previous year.

"We could cross $15bn in deal value in just the first half of this year," Sumeet Abrol, partner and national leader at Grant Thornton, told the BBC.

For many industry observers, the growing acquisition trend brings back memories of the international buying spree undertaken by Indian conglomerates nearly two decades ago.

During that period, companies including the Tata Group acquired globally recognised assets such as Jaguar Land Rover and Corus Steel.

Changing Motives Behind Global Expansion

Analysts, however, indicate that the rationale behind acquisitions today differs from the earlier wave.

Instead of pursuing international assets primarily as symbols of global ambition, Indian companies are increasingly looking at strategic and operational advantages.

The broader economic backdrop has also shifted considerably compared with the early 2000s. India is currently witnessing slower foreign portfolio inflows, weaker net foreign direct investment (FDI), and subdued private sector investment despite tax incentives and production-linked subsidy programmes introduced by the government.

"Corporate profits [of India's top 500 companies post-Covid] grew at 30.8% per annum. But still, our overall capital formation rates from the private sector have been disappointing," India's chief economic advisor V Anantha Nageswaran recently said at a policy conference.

Smaller Companies Also Looking Overseas

Industry experts suggest that growing overseas investment activity reflects both concerns about domestic business conditions and the opportunity to build stronger global capabilities.

"There is plenty of Indian money heading abroad. Even among the companies that we own in our portfolio, many are setting up greenfield factories in the US and other places where industrial land is almost free and accessing working capital is much easier than here," Saurabh Mukherjea of Marcellus Investment Managers told the BBC.

The trend extends beyond large corporations and billion-dollar deals.

While Sun Pharma's acquisition and reports regarding Mukesh Ambani's potential involvement in a $300 billion oil refinery project in Brownsville have attracted attention, analysts suggest many smaller firms are also making similar investments internationally.

"Dozens of smaller Indian companies are making similar greenfield investments or pursuing smaller acquisitions," Mukherjea said.

According to Neha Singh, co-founder of Tracxn, stronger balance sheets and improved access to international financing are also driving the trend.

"Indian companies are increasingly looking overseas to access markets, brands, technology capabilities, R&D expertise, and established distribution networks that may otherwise take years to build organically," Singh said.

The increasing pace of international acquisitions highlights a shift in how Indian businesses are approaching long-term growth, focusing not only on scale but also on technology, market access and operational efficiency.