Indian Billionaires Are Buying Foreign Companies as Domestic Growth Slows

Indian companies are accelerating their pursuit of foreign targets at a pace not seen in nearly two decades, BBC Business reported Saturday, as slowing domestic conditions push India Inc outward.

Consultancy Grant Thornton tracked 162 outbound deals totalling more than $18 billion in 2025. That figure represents a 34% rise from the prior year. Grant Thornton partner Sumeet Abrol told the BBC that deal value could surpass $15 billion in the first half of 2026 alone.

Flagship Deals Signal a Shift in Ambition

The headline transaction is Sun Pharmaceuticals’ agreed $11.75 billion purchase of New York-listed women’s health firm Organon & Co. It is the largest overseas acquisition by an Indian company in roughly two decades.

Other notable moves include Tata Motors’ $4.4 billion acquisition of Turin-based vehicle manufacturer Iveco, IT services company Coforge’s $2.35 billion deal for Silicon Valley AI firm Encora, and the Bajaj Group taking a 23% stake in insurance giant Allianz SE.

Analysts told the BBC these deals differ meaningfully from India’s earlier trophy-hunting era. Companies are buying for operational capability, market access, and supply-chain resilience rather than prestige alone.

A Tougher Home Environment Pushes Capital Abroad

The macro backdrop explains much of the motivation. Foreign portfolio investors have pulled billions from Indian markets this year. Net FDI inflows have dropped sharply. Private-sector capital formation has remained weak despite government subsidies and tax relief.

India’s chief economic advisor V Anantha Nageswaran recently acknowledged the paradox publicly. He noted that corporate profits among India’s top 500 companies grew at roughly 31% annually since Covid, yet private investment rates remain disappointing.

Fund manager Saurabh Mukherjea of Marcellus Investment Managers told the BBC that Indian capital is heading abroad in volume. He said dozens of smaller companies are establishing greenfield factories in markets where industrial land is inexpensive and working capital easier to access.

Risks Are Real and History Offers Warnings

Not every foreign acquisition pays off. Tata Steel’s purchase of Corus Steel became a financial burden lasting years, Mukherjea cautioned. A further structural weakness persists: Indian acquirers still cannot use their own shares as acquisition currency. Even a transaction as large as the Sun Pharma deal was structured as an all-cash payment, concentrating financial risk.

Stronger balance sheets and improved access to global financing are enabling the current wave, according to Neha Singh, co-founder of data intelligence firm Tracxn. A slate of new free-trade agreements between India, the UK, Europe, and Australia could deepen the trend further in the years ahead.

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