INDIA Trends and Developments Contributed by: Kunal Chandra, Kabeer Mathur, Chinmay Bilgi, Sharnam Vaswani and Rajdeep Mukherjee, Trilegal
Outbound M&A: Capability Over Capacity The strategic intent in dealmaking was also reflected in India’s outbound M&A. Approximately USD18.2 bil - lion was deployed to access not only geographical expansion but also technology, engineering depth, established brands and operating capabilities. Indian acquirers targeted technology platforms, manufactur - ing operations with overseas market access, energy transition assets and global consumer brands with the potential to be scaled in India. With new tariffs intro - ducing uncertainty for export-oriented sectors, acqui - sitions abroad offered Indian corporates a means of fortifying market share and balancing exposure to volatile cross-border trade flows. Indian corporates have recognised that competing globally requires access to design expertise, estab - lished distribution platforms and proven technology – assets that take significant time to build organically. Outbound M&A in 2025 was therefore driven by com - petitive necessity, with Indian companies using over - seas acquisitions not merely to expand geographically but also to evolve their capabilities. Infrastructure, Real Estate and Energy: Value in Predictability Infrastructure and real estate transactions recorded a marked increase in activity during 2025, with both deal volumes and aggregate value rising substantial - ly. This growth was supported by asset monetisation initiatives, public–private partnership frameworks and increasing participation by institutional capital. Across both sectors, investors increasingly prioritised assets capable of generating predictable and durable cash flows, reflecting a broader preference for stability in an otherwise volatile global investment environment. In the real estate sector, investment activity increas - ingly reflected a focus on yield durability, predictable income streams, scale and operating visibility rather than development-led expansion. Several large office platform acquisitions and REIT portfolio expansions reinforced a preference for platform-led growth in mature, income-generating assets. Real estate deal activity remained robust in 2025, with institutional investments reaching a record USD8.5 billion, representing a 29% year-on-year increase, and
Acquirers focused on strengthening existing value chains rather than expanding into unfamiliar sectors, showing a preference for depth over breadth and effi - ciency over diversification. Manufacturing led domestic M&A by transaction vol - ume with 105 deals, representing approximately 15% of overall activity. The surge was driven by efforts to localise supply chains and expand production capac - ity, reinforced by production-linked incentive schemes under which companies aggregated capacity to meet output thresholds – making consolidation not just a private strategic choice but an instrument of industrial policy. The rise of domestic consolidation suggests that corporate India has entered a phase of optimisa - tion – prioritising scale, resilience and efficiency over rapid diversification. Financial Services: Commitment, Capital and Competitive Positioning Beyond organic capital accretion, the banking and financial services sector illustrated the dual forces shaping Indian M&A in 2025: global institutions estab - lishing a long-term presence in India, and domestic businesses consolidating to strengthen their competi - tive positioning. Activity was driven by foreign invest - ment into banks and financial institutions, consolida - tion among non-banking financial companies, and capital strengthening exercises. Foreign lenders were drawn by India’s sustained credit expansion, with the sector offering strong long-term fundamentals driven by expanding credit demand, rising financialisation and deeper penetration across retail, MSME and infrastructure financing. Banks and non-banking financial companies are capital-intensive, making strategic stake sales and consolidation an efficient route by which to strengthen balance sheets and improve competitiveness. Acquiring a stake in an Indian financial institution also provides immedi - ate access to established distribution networks and regulated lending capabilities, making financial ser - vices a natural focal point for large-ticket dealmaking where scale and regulatory positioning are central to value creation.
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