India Inc's Global Buying Spree: New Era Dawns

Indian companies are currently engaged in a substantial wave of overseas acquisitions, with Sun Pharmaceuticals' $11.75bn purchase of Organon & Co in late April being a notable event. This transaction marked the largest acquisition by an Indian firm abroad in nearly two decades.

Across 2025, Indian companies collectively spent over $18 billion on outbound deals, representing a 34% increase from the previous year. This activity includes major acquisitions like Tata Motors' purchase of Iveco and Coforge's acquisition of AI firm Encora.

Unlike past acquisition frenzies, current motivations are largely strategic. Companies are targeting Western assets not merely for global visibility, but to gain access to markets, brands, technology, and R&D capabilities. Securing supply chains amidst global trade uncertainties is also a key driver.

The shift abroad is also influenced by domestic economic conditions. While corporate profits have grown, private sector investment in India remains subdued. Companies find greater opportunities and easier access to working capital and industrial land in countries like the US.

This trend is supported by stronger balance sheets and improved global financing access for Indian firms. However, past acquisitions, like Tata Steel's purchase of Corus Steel, serve as cautionary tales. The reliance on all-cash deals, as seen with Sun Pharma, also presents financial risks.

Looking ahead, a spate of free trade agreements could further accelerate outbound investment. Additionally, a younger generation of corporate leaders often residing and educated abroad may prefer holding assets in foreign currencies, especially given the rupee's historical depreciation against the dollar.