Indian conglomerates turn to foreign acquisitions as domestic growth slows

Indian conglomerates are increasingly turning to overseas acquisitions as domestic growth slows, with a wave of high-value foreign deals highlighting a shift in corporate strategy.

In late April, Sun Pharmaceuticals agreed to acquire New York-listed Organon & Co., a women’s health and biosimilars company, in an $11.75 billion (£8.59 billion) transaction, Caliber.Az reports, citing the BBC.

The deal marks the largest overseas purchase by an Indian firm in nearly 20 years and is part of a broader surge in international expansion by Indian companies.

Recent months have also seen several major cross-border deals, including Tata Motors’ $4.4 billion acquisition of Italian vehicle manufacturer Iveco, IT firm Coforge’s $2.35 billion takeover of Silicon Valley-based AI company Encora, and the Bajaj Group’s purchase of a 23% stake in global insurer Allianz SE earlier this year.

According to consultancy Grant Thornton, 162 Indian companies collectively spent more than $18 billion on outbound acquisitions in 2025, representing a 34% rise compared with the previous year. Partner Sumeet Abrol said deal activity could exceed $15 billion in just the first half of the year alone.

Analysts note that this latest wave of overseas buying recalls earlier expansion drives by Indian corporate giants such as the Tata Group, which two decades ago made major global acquisitions, including Jaguar Land Rover and Corus Steel.

However, experts say today’s motivations differ, with companies targeting foreign assets not only for prestige but also for strategic growth and operational advantages.

The shift comes against a changed economic backdrop.

Unlike the early 2000s boom period, India is now facing capital outflows, weaker foreign direct investment, and subdued private sector investment, despite government incentives such as tax cuts and production-linked subsidies.

India’s Chief Economic Adviser V. Anantha Nageswaran recently noted that while corporate profits among top firms have grown strongly since the pandemic, private sector capital formation has remained weak.

Economists say the growing appetite for overseas expansion reflects both frustration with domestic conditions and the pursuit of more stable growth opportunities, diversification, and capability development in international markets.

By Bakhtiyar Abbasov