INDIA Law and Practice Contributed by: Kunal Chandra, Kabeer Mathur, Chinmay Bilgi, Sharnam Vaswani and Rajdeep Mukherjee, Trilegal
1. Trends 1.1 M&A Market
Capability-Driven Acquisitions in Domestic Technology and Global Markets Indian companies are increasingly using acquisitions to strengthen technological capabilities and expand global competitiveness. Technology transactions often involve mid-sized, specialised targets with expertise in areas such as software development, arti - ficial intelligence and digital infrastructure. Outbound acquisitions have similarly targeted product expertise, engineering capabilities and distribution networks. 1.3 Key Industries Manufacturing and Industrial Platforms Manufacturing attracted significant deal activity, with 144 deals accounting for 15% of total activity. Acqui - sitions targeted production capacity expansion and domestic supply chain integration. Production Linked Incentive schemes, together with the broader “Make in India” programme, have also encouraged domestic and foreign investments in the manufacturing sector. Banking and Financial Services The banking and financial services sector generated considerable deal activity, with deals contributing over 26% of total M&A deal value. Transactions were driven by capital infusions into banks, consolidation among non-banking financial companies and foreign invest - ment seeking exposure to India’s expanding credit market. Rising regulatory oversight and funding pres - sures have driven consolidation, improving capital Technology-led transactions were among the most active segments of India’s M&A landscape, with aggregate deal values estimated at USD27.5 billion, representing a three-year high and an increase of 30% over the USD20 billion recorded in 2024. Companies across industries have acquired specialised technol - ogy firms to enhance digital capabilities. Investment in digital infrastructure, particularly data centres, has also grown, driven by increasing demand for data storage and processing capacity across the economy. Energy and Renewable Power Energy and infrastructure assets, particularly renew - able power platforms, attracted strong investor inter - est, with 83 transactions in 2025 having an aggregate adequacy and operational resilience. Technology and Digital Infrastructure
The Indian M&A market grew significantly in 2025, with 963 announced deals aggregating to approxi - mately USD60.2 billion, up 36% by value and 41% by volume over 2024. This growth reflects sustained interest in India’s long-term growth trajectory and a relatively resilient economy amid global macroeco - nomic volatility. Domestic strategic transactions accounted for a sig - nificant proportion of deal activity, with Indian cor - porates pursuing acquisitions to consolidate market positions, integrate supply chains and expand into adjacent business verticals. Inbound investment has remained robust, with global investors viewing India as a key market for long-term strategic investment, particularly for manufacturing and industrial invest - ment. Indian companies have simultaneously pursued selective outbound acquisitions in sectors such as technology services, speciality chemicals and phar - maceuticals to acquire intellectual property, access markets and enhance capabilities. 1.2 Key Trends Shift Towards Strategic Influence and Control Investor preferences have shifted from passive minor - ity stakes towards transactions conferring operational influence and control. The average inbound deal size rose from approximately USD44 million in 2024 to nearly USD242 million in 2025, reflecting a market oriented towards longer-term, strategic acquisitions with greater investor involvement in management and direction. Consolidation and Platform Expansion in Domestic Industries A defining feature of recent M&A activity in India has been consolidation within established industries. Large corporate groups have increasingly relied on acquisitions to strengthen core businesses, integrate supply chains and improve operating efficiency, with transactions focused on expanding existing platforms rather than diversification. This consolidation has been particularly visible in high-growth sectors such as fin - tech, logistics and education technology, to establish competitive scale ahead of market maturation.
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