Indian Firms Lead Global Expansion with $18 Billion in Overseas Acquisitions in 2025
Indian corporations are making headlines by aggressively expanding their global footprints through overseas acquisitions. In 2025, Indian firms spent more than $18 billion acquiring foreign companies, marking a significant surge in cross-border investments and signalling a robust global growth strategy for India Inc.
Unprecedented Overseas Buying Spree
The year 2025 witnessed an unprecedented level of foreign acquisitions by Indian companies. According to a report by Grant Thornton, which was highlighted by the BBC, 162 Indian businesses collectively invested over $18 billion in foreign acquisitions — a 34% increase compared to the previous year.
Sun Pharmaceutical Industries set a record with its $11.75 billion acquisition of the women’s healthcare company Organon, marking the largest overseas acquisition by an Indian entity in nearly two decades.
Key Deals Highlighting India’s Global Ambitions
- Sun Pharmaceutical’s historic purchase of Organon
- Tata Motors’ $4.4 billion acquisition of Italian truck manufacturer Iveco
- Coforge’s $2.35 billion purchase of Silicon Valley AI firm Encora
- Bajaj Group’s strategic 23% stake acquisition in German insurer Allianz SE
Rising Outbound Foreign Direct Investment (FDI)
Corroborating this acquisition trend, India’s outbound FDI hit $48.6 billion in the financial year 2025-26, up from $41.6 billion the previous year, according to data from the Reserve Bank of India. The increase was particularly notable in April 2026 when outbound FDI surged nearly 90% year-on-year to $6.8 billion.
Major Indian players such as Tata Communications, Life Insurance Corporation of India, and JSW Neo Energy were at the forefront of this outbound investment wave.
Driving Forces Behind The Global Expansion
Several factors influence Indian companies’ moves towards foreign markets:
- Stronger balance sheets: Indian firms are financially healthier and better positioned to invest abroad.
- Business environment: Favorable access to cheaper industrial land and relatively easier working capital access overseas, especially in countries like the US.
- Next-generation business leaders: Many heirs of Indian businesses live and study abroad, preferring to hold assets in foreign currencies.
- Upcoming trade agreements: Potential free trade pacts with the UK, Australia, and European nations are expected to further boost outbound investments.
Challenges Remaining for Indian Companies
Despite their growing presence overseas, Indian firms face challenges such as the limited ability to use their stock as currency in acquisitions, unlike their American and European counterparts.
On the domestic front, investment growth remains uneven. While profits for India’s top 500 companies have grown over 30% annually post-Covid, private investment in India is still weak. Concerns like policy and tax uncertainty, regulatory unpredictability, demand visibility issues, and long approval processes are cited as reasons many businesses hesitate to invest heavily within India.
The Domestic vs Overseas Debate
The significant outbound investments have sparked debate among experts and on social media platforms. Proponents view these acquisitions as India’s rising global power and the natural progression of a growing economy. Critics question why companies choose to invest overseas rather than developing factories or manufacturing hubs in Indian states which could boost local employment and economic growth.
The Future of Indian Global Expansion
Financial services currently dominate India’s outward FDI, with manufacturing’s share declining sharply between fiscal years 2021 and 2026. However, experts anticipate that upcoming trade agreements will encourage Indian companies to deepen their overseas operations.
As Indian businesses continue to establish their presence globally, careful attention to both international prospects and domestic challenges will shape the next phase of India’s corporate evolution.
Disclaimer: This article is based on publicly available information, company announcements, and industry reports from sources including Grant Thornton and the BBC. Some details may evolve with new data.
