INDIA Trends and Developments Contributed by: Kunal Chandra, Kabeer Mathur, Chinmay Bilgi, Sharnam Vaswani and Rajdeep Mukherjee, Trilegal
Outlook for the Indian M&A Market M&A activity in India during 2025 reflected a broad - er shift in approach, driven by a desire for strategic control, enhanced operational capability and stronger supply-chain resilience. The rise of domestic con - solidation, outbound acquisitions and investments in regulated sectors indicates that companies are using M&A to build stronger business platforms and secure long-term competitive advantages. Capital deployment has become more selective and strategi - cally driven, signalling a transition from expansion- oriented dealmaking towards transactions designed to reinforce business fundamentals. At the same time, the emergence of more reliable exit pathways through strategic sales and a maturing public markets ecosys - tem has created a more complete investment cycle, enabling investors to deploy larger and more concen - trated capital commitments. Looking ahead, cross-border transaction activity involving Indian companies is likely to be influenced increasingly by developments in global trade arrange - ments. The free trade agreement between India and the European Union, as well as discussions with the United States on tariff alignment and supply chain co- operation, are expected to shape investment strat - egies across sectors such as automobiles, electric mobility components, pharmaceuticals, electronics and advanced manufacturing. Geopolitical volatility in West Asia also warrants monitoring, particularly for sectors dependent on energy inputs and logistics, which may impact valuation assumptions and trans - action timelines. Note: The data in this article is derived from publicly available sources. The views expressed herein are those of the authors and are not intended to constitute advice or reflect the views of the firm.
timeline. The reform reflects a pragmatic recalibration that preserves investment screening where national security warrants it while eliminating disproportionate effects on mainstream institutional capital. India’s DPDP Act: A New Data Governance Paradigm India’s data protection framework has taken a signifi - cant step forward with the notification of the Digital Personal Data Protection Rules in November 2025, which operationalise the consent-based and rights- oriented framework introduced under the Digital Per - sonal Data Protection Act, 2023 (“DPDP Act”). The rules introduce obligations relating to breach report - ing, consent management and responsibilities of enti - ties handling personal data, while providing phased timelines for compliance. Full enforcement is phased, with core compliance obligations (consent architec - ture, security protocols and cross-border transfer restrictions) not taking effect until May 2027, affording organisations an 18-month implementation window. From an M&A perspective, these developments have created a dedicated data protection diligence work - stream, particularly in transactions involving technol - ogy, healthcare and digital services businesses, where due diligence and documentation address DPDP Act compliance readiness. India’s Labour Law Overhaul: A Catalyst for M&A Activity India has consolidated 29 central (ie, federal) labour laws into four codes covering wages, social security, industrial relations and occupational safety, with full implementation pending state-level rules, expected around April 2026. This reform is expected to influ - ence the Indian M&A market in two distinct ways: over the medium term, this will support deal activity by rationalising India’s fragmented labour law frame - work through uniform definitions, digital compliance architecture and a single registration model. However, during the transition period, it may increase transac - tion risk because acquirers will have to diligence not only the target’s historic compliance under legacy laws but also the target’s preparedness for the codes as they are rolled out across central and state regimes.
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