Indian Companies Step Up Overseas Acquisitions in 2026

Overview: Indian companies are stepping up overseas acquisitions even as the broader Indian M&A market records fewer transactions. According to Boston Consulting Group (BCG), outbound M&A value rose 76% to $8.8 billion in the first seven months of 2026, while the number of outbound deals fell 19% to 92.  Separately, JPMorgan data shows Indian outbound deals had reached nearly $24 billion so far in 2026, with the bank expecting continued overseas M&A activity, states a report by Financial Express. The trend is being driven by market access, supply-chain resilience and the acquisition of specialised capabilities, particularly in technology.

Indian Outbound M&A Gains Momentum

Indian companies are increasingly using overseas acquisitions as part of their international growth strategy.

BCG’s analysis shows that outbound M&A value increased 76% to $8.8 billion during January–July 2026, compared with about $5 billion during the same period in 2025. However, the number of outbound transactions declined 19% to 92.

That distinction matters. Indian companies are not necessarily doing more overseas deals by number; rather, the value of the transactions being completed has increased significantly.

The outbound increase also contrasts with other parts of India’s M&A market. In the same period, inbound M&A value fell 58% to $2.7 billion, while domestic deal value declined 14% to $10.1 billion. Overall Indian M&A deal volume fell by around 20%.

JPMorgan Sees More Indian Companies Going Overseas

The outbound trend is also visible in JPMorgan’s data. According to JPMorgan, outbound deals from India had reached close to $24 billion in 2026 so far, putting the market on track for a record year. The bank expects more Indian companies to pursue overseas M&A, particularly as businesses seek to strengthen supply chains amid geopolitical uncertainty.

Paul Uren, JPMorgan’s head of investment banking for Asia Pacific, identified supply-chain resilience as one of the factors driving the activity. Indian companies are also exploring opportunities linked to energy and critical minerals, including potential investments connected with trade discussions.

The JPMorgan figure and the BCG figure cover different periods and methodologies, so they should not be combined into a single market-size figure. Together, however, they point to the same broader development: Overseas M&A has become an important part of Indian companies’ growth and investment strategies in 2026.

Why Are Indian Companies Buying Overseas?

BCG identifies three principal reasons for the increase in outbound acquisitions.

1. Strengthening Global Supply Chains

Indian companies with international businesses are using acquisitions to strengthen their supply-chain presence outside India.

Sun Pharmaceutical’s acquisition of Organon is a prominent example. The proposed transaction, valued at $11.75 billion including debt, would give Sun Pharma access to Organon’s global portfolio and operations.

2. Accessing Overseas Markets and Customers

Acquiring an established overseas business can provide access to customers, order books and business-development capabilities that may take considerably longer to build organically

BCG cites transactions such as LTM’s acquisition of Randstad and Mphasis’s purchase of Theory and Practice Business Intelligence as examples of Indian companies seeking greater access to established markets and customers.

3. Acquiring Specialised Capabilities

Technology is another important driver. BCG points to Coforge’s acquisition of Encora and Infosys’s transactions involving Versent and Stratus as examples of Indian companies acquiring specialised capabilities, particularly in AI-enabled IT services. The report notes that some IT-services companies are choosing to buy capabilities rather than build them internally.

Fewer Deals, But Larger Transactions

The overseas trend is taking place against a broader shift in Indian M&A.

BCG report suggests that Indian M&A deal volume declined around 20% in the first seven months of 2026. Yet transactions above $1 billion accounted for around 50% of total Indian M&A value, approximately 14 percentage points higher than in 2025. Deals above $100 million remained relatively more resilient, with 45 transactions compared with 51 in the same period of 2025 and 37 in 2024.

This suggests greater selectivity in the market. Smaller transactions accounted for a substantial part of the decline in deal volume, while companies continued to pursue acquisitions that offered a clearer strategic rationale.

For outbound M&A specifically, that strategic rationale can include market entry, supply-chain integration and acquisition of capabilities that are difficult to build internally.

What Does an Overseas Acquisition Mean for an Indian Company?

For an Indian company, buying a business overseas is not simply a commercial transaction. The proposed investment also needs to fit within India’s Overseas Investment framework and the company’s own corporate and tax structure.

Before proceeding, businesses may need to examine:

• the proposed overseas investment structure;
• applicable FEMA and Overseas Investment requirements;
• funding and foreign-exchange arrangements;
• valuation and transaction documentation;
• tax implications in India and the overseas jurisdiction;
• corporate approvals and reporting;
• ownership and control of the foreign entity; and
• continuing compliance after the investment is made.

The exact requirements depend on the nature of the investment, the jurisdiction, the target entity and the structure of the transaction.

Overseas M&A Is Also a Compliance Exercise

The regulatory work does not necessarily end when the acquisition closes.

An Indian company making an overseas investment may have continuing reporting and compliance obligations relating to the foreign entity and the investment. The structure of the transaction can also affect taxation, funding, inter-company arrangements and future repatriation or restructuring.

This makes regulatory planning an important part of overseas M&A due diligence, alongside commercial, financial and legal evaluation of the target.

Businesses considering an overseas acquisition can also review Setindiabiz’s guidance on Overseas Direct Investment before evaluating the transaction structure.

Why This Matters for Indian Businesses

The 2026 outbound M&A trend shows that overseas acquisitions are becoming a meaningful route for Indian companies seeking international growth.

For a business considering its first overseas acquisition, the decision involves more than identifying an attractive foreign target. The company needs to consider how the investment will be structured, how it will be funded, which Overseas Investment rules apply and what continuing reporting and compliance obligations will follow.

Early assessment of these issues can help a company identify regulatory constraints before committing to the transaction.

Setindiabiz Support

An overseas acquisition can involve Overseas Investment regulations, FEMA requirements, transaction structuring, tax considerations, corporate approvals and continuing compliance. Setindiabiz supports businesses with overseas expansion, regulatory documentation, business structuring and ongoing compliance requirements.

Businesses planning an overseas acquisition should assess the proposed investment structure, applicable Overseas Investment requirements, tax considerations and corporate approvals before proceeding. Professional support can help businesses identify the relevant regulatory requirements and build the compliance framework around the transaction.

FAQs

Indian companies are increasingly using overseas acquisitions to pursue international growth, strengthen supply chains and acquire capabilities that may be difficult to build domestically.

For Indian businesses, the growth in outbound M&A also brings a practical compliance question: how should an overseas acquisition be structured and reported under India’s Overseas Investment framework? That question needs to be addressed alongside the commercial case for the acquisition.