India Inc’s mega-deal moment: how billion-dollar floodgates are opening

India Inc’s corporate landscape is undergoing a profound transformation, according to The Economic Times. After decades in which large global mergers and acquisitions (M&A) were sporadic and mid‑market transactions dominated the scene, the floodgates are now opening for billion-dollar deals. What was once an exceptional milestone in Indian dealmaking has begun emerging as a structural trend — signaling a new era in the Indian economy where big-ticket deals are poised to become a recurring theme.

This shift has major implications for Indian companies, foreign investors, capital markets, regulatory frameworks, and broader economic growth. In this article, we break down the forces powering this surge in high-value transactions and explain what it means for India Inc’s corporate future.

From rare to routine: the growth of high-value deals

For decades, India’s M&A market was dominated by domestic corporate consolidation at the mid-market level. Large cross-border transactions and strategic acquisitions exceeding $1 billion were rare events, often dependent on global investment banks and foreign financiers.

But that pattern has begun to change.

According to data from 2025, India recorded a total of 963 M&A transactions, with an estimated combined value of $60.2 billion — a 36 % increase in deal value from the prior year. Even more noteworthy, the number of deals surpassing the $1 billion threshold climbed to 14, a 133 % year-on-year increase. These large deals accounted for more than half of the total M&A value in 2025, confirming that mega deals are no longer isolated outliers.

This shift underscores a deeper structural evolution in India Inc — one increasingly characterized by larger transactions driven by corporate consolidation, capital inflows, and strategic global positioning.

Key drivers behind India’s M&A surge

Strong economic growth fuels corporate ambition: India’s economic expansion, projected at roughly 7 % annually, provides fertile ground for global M&A activity. Sustained growth boosts corporate balance sheets, increases market confidence, and encourages companies to pursue strategic consolidation to gain scale and reach new markets. Businesses now actively seek partners or acquisitions to accelerate growth, reduce competition, or enhance technological capabilities — especially in sectors like banking, financial services, technology, infrastructure, and manufacturing.

Sectoral consolidation gathers momentum: Across industries, consolidation is becoming a key theme:

1. Banking and financial services: Larger players acquiring stakes in smaller rivals to capture market share and improve capital efficiency.
2. Technology & IT services: Global strategic buyers investing heavily in Indian tech firms, reflecting confidence in India’s digital expertise.
3. Industrial & infrastructure: Conglomerates consolidating assets to optimize capital deployment and compete globally.

These trends are interconnected outcomes of a more mature corporate ecosystem that values scale, corporate consolidation, and competitive advantage.

Capital markets and strategic capital play a growing role: India’s capital markets have evolved significantly. Buoyant equity markets and deeper investor participation offer companies flexible ways to raise funds, recapitalize, or execute complex transactions, including share swaps. Meanwhile, private equity and private credit firms are more comfortable underwriting larger investments, particularly in infrastructure, manufacturing, and technology. This combination of strategic buyers and financial sponsors creates a supportive financing environment for bigger, more complex deals and encourages participation in international mergers and acquisitions.

Domestic advisory firms are stepping up: One of the most striking developments in India’s M&A landscape is the increased role of the Big Four advisory firms — EY, PwC, Deloitte, and KPMG. Traditionally focused on mid-market deals, these firms now advise on transactions worth $500 million and higher, a space once dominated by global investment banks.

1. EY advised on seven $500M+ deals between 2024–2025.
2. PwC and Deloitte also guided key large-value transactions.

This expansion reinforces the maturity of India Inc’s M&A ecosystem and reduces dependency on foreign intermediaries.

Regulatory changes: RBI tightens the framework — and enables big deals

A pivotal factor in this new phase is regulatory reform. The Reserve Bank of India (RBI) has updated acquisition financing norms, allowing Indian banks a greater role in financing big deals. Previously, domestic banks were restricted from directly financing such acquisitions, ceding that role to foreign lenders.

Under new rules, Indian banks can finance up to 75 % of an acquisition’s value, subject to prudential safeguards. This change expands the funding base for large transactions and reduces reliance on foreign capital — a significant development for homegrown dealmaking.

State Bank of India and other domestic lenders are reportedly moving to leverage these new norms, positioning themselves to finance larger deals under the revised regime.

Case studies: examples of the M&A shift

Some of the headline transactions reflecting this trend include:

1. MUFG Bank’s ~$4.45 billion minority stake in Shriram Finance — a prime consolidation company example.
2. Emirates NBD’s ~$3 billion acquisition of a controlling interest in RBL Bank

These deals are emblematic of the scale and strategic value now moving through India Inc’s M&A landscape.

The bigger picture: why this matters

This shift toward more frequent high-value transactions isn’t just about headline figures — it signals something deeper about India’s position in the global economy:

India is becoming a strategic investment destination: Global strategic buyers increasingly view Indian companies as essential to growth strategies. Strong domestic demand, technological capabilities, and competitive cost structures make India an attractive launchpad for global mergers and acquisitions.

Corporate strategies are evolving: India Inc corporates are no longer passive consolidators. They are emerging as proactive strategic investors — seeking scale, diversification, and new competencies through acquisitions. This change is altering boardroom thinking from organic growth alone to acquisition-led strategies.

Capital market sophistication enables bigger deals: A deep, liquid market gives companies the flexibility to raise funds efficiently — through equity, debt, share swaps, or structured financing — enabling deals that might have been impossible a decade ago and supporting participation in international mergers and acquisitions.

Looking ahead: what 2026 and beyond may hold

If the structural drivers observed in 2025 persist, 2026 could see India Inc further solidify its role as a destination for mega deals — not just exceptions but an expected feature of the economy.

Key trends to watch include:

1. Continued rise in billion-dollar deals
2. Foreign investor interest in Indian tech and financial services
3. Emerging private-equity megadeals
4. Domestic firms crossing borders for strategic acquisitions
5. Larger roles for private credit and institutional financiers
6. Growth in global M&A and international mergers and acquisitions

These developments could usher in a new chapter of Indian corporate growth — one defined by bold investments, strategic consolidation, and global competitiveness.

Conclusion: India Inc enters a new dealmaking frontier

India Inc’s M&A landscape is at an inflection point. The convergence of economic growth, regulatory evolution, capital market deepening, and strategic capital availability is transforming dealmaking dynamics. Mega deals and billion-dollar deals are no longer sporadic anomalies — they are becoming part of the new normal.

For companies, investors, advisers, and policymakers, this moment presents both opportunities and challenges. Navigating this environment demands strategic clarity, strong financial discipline, and an eye on global opportunities.

What remains clear is that India Inc’s corporate story is entering an exciting new phase — one marked by scale, ambition, and a flood of high-value transactions that could define the next decade of economic growth and position India prominently in global mergers and acquisitions.

As India Inc continues to embrace corporate consolidation and mega deals, the role of VC and PE firms is set to grow. Strategic investors and global players are increasingly participating in high-value transactions, signaling India’s rise in global M&A and international mergers and acquisitions. For companies, staying proactive in dealmaking and leveraging evolving capital markets will be critical to capturing opportunities and sustaining long-term growth in the decade ahead. This new era of mega deals positions India Inc as a global hub for strategic growth and investment opportunities.