- Indian companies are buying overseas again, but this timethe strategy looks different.
- Sun Pharmaceutical Industries recently agreed to buy Organon & Co for £8.59 billion ($11.75 billion).
- Analysts suggest firms are chasing technology, markets and supply chain security rather than global prestige alone.
Indian companies are once again on a global buying spree, snapping up businesses across sectors ranging from pharmaceuticals and automotive to artificial intelligence and insurance. But unlike the headline-grabbing takeover wave of the early 2000s, this new phase appears to be driven less by corporate prestige and more by survival, diversification and access to technology.
The latest example came in late April when Sun Pharmaceutical Industries agreed to acquire New York-listed Organon & Co for £8.59 billion ($11.75 billion), marking the largest overseas acquisition by an Indian company in nearly two decades.
The deal adds to a growing list of international acquisitions by Indian firms in 2025. Tata Motors recently agreed to acquire Italian truck maker Iveco for £3.22 billion ($4.4 billion), while IT firm Coforge bought Silicon Valley-based AI company Encora in a £1.72 billion ($2.35 billion) deal. Earlier in the year, the Bajaj Group also acquired a 23 per cent stake in German insurer Allianz SE.
According to consultancy Grant Thornton, Indian firms completed 162 outbound acquisitions worth more than £13.1 billion ($18 billion) in 2025, up 34 per cent from the previous year.
From trophy assets to strategic bets
The renewed overseas push has inevitably drawn comparisons with the Tata Group’s aggressive global expansion two decades ago, when Indian companies chased globally recognised assets such as Jaguar Land Rover and Corus Steel.
But analysts suggest the thinking has changed significantly.
Rather than buying Western companies simply to signal global ambition, Indian firms now appear more focused on acquiring technology, intellectual property, research capabilities and established distribution networks that would take years to build independently.
Sumeet Abrol reportedly said outbound deal activity could cross £10.9 billion ($15 billion) in the first half of 2026 alone.
The shift is also unfolding against a very different economic backdrop inside India. Foreign portfolio investors have been pulling money out of Indian markets, net foreign direct investment has weakened and private sector investment remains subdued despite tax cuts and production-linked incentives introduced by the government.
India’s Chief Economic Adviser V Anantha Nageswaran reportedly said corporate profits among India’s top companies grew strongly after the pandemic, but private sector capital formation remained disappointing.
That disconnect appears to be pushing more Indian companies to look abroad for growth opportunities and operational flexibility.
Why Indian money is moving overseas
Industry experts suggest several factors are now accelerating outbound investments.
Saurabh Mukherjea reportedly said many Indian businesses are finding it easier to access land, financing and operational support overseas than at home. He added that several firms in his investment portfolio are already building factories in the US and other international markets.
According to Neha Singh, stronger balance sheets and improved access to global financing are also helping Indian companies pursue larger acquisitions.
Supply chain security has become another major factor. Companies are increasingly looking to build international manufacturing and distribution networks as global trade tensions, tariffs and geopolitical disruptions continue to reshape business planning.
Still, overseas expansion carries significant risks. Analysts often point to Tata Steel’s acquisition of Corus Steel as a cautionary example after the deal became financially burdensome for years.
Mukherjea reportedly noted that many Indian firms still rely heavily on cash deals rather than stock-based acquisitions, potentially increasing financial risk in large transactions.
Even so, analysts believe outbound acquisitions are unlikely to slow anytime soon. New trade agreements between India and markets including the UK, Europe and Australia could encourage even more Indian firms to establish overseas operations and reduce dependence on the domestic economy.
For some business families, the shift may also reflect a generational change. Many younger corporate heirs now live, study and work abroad, making foreign currency assets and international operations increasingly attractive at a time when the rupee continues to weaken gradually against the dollar.
