Sun Pharmaceuticals recently agreed to acquire Organon & Co for $11.75 billion, marking one of the largest overseas acquisitions by an Indian firm in decades. This deal follows a consistent trend of high-profile international purchases by major Indian corporations. From Tata Motors` $4.4 billion acquisition of Iveco to various tech investments, Indian companies are moving beyond domestic borders with renewed urgency.The Indian corporate landscape is shifting rapidly.
Data from Grant Thornton reveals that 162 Indian companies spent over $18 billion on outbound acquisitions in 2025, a 34% increase from the previous year. While this echoes the global buying spree seen two decades ago, the motivations today are starkly different. Companies are no longer chasing trophy assets; they are seeking strategic operational advantages and geographic diversification in a volatile global market.The domestic economic environment has changed drastically since the early 2000s.
India is currently grappling with a sharp decline in foreign direct investment and a notable exodus of portfolio investors. Despite government efforts to incentivize domestic manufacturing through subsidies, private sector capital formation remains disappointing. As Chief Economic Advisor V Anantha Nageswaran recently noted, corporate profits have grown, yet domestic investment rates are not following suit.Capital is seeking efficiency abroad.
Analysts argue that this overseas expansion is driven by a growing disenchantment with the domestic business climate. Saurabh Mukherjea of Marcellus Investment Managers points out that for many firms, setting up factories in the US is more cost-effective. Land access and working capital are frequently more accessible abroad than within the Indian market.
Beyond the giants, smaller companies are also accelerating this trend. Neha Singh, co-founder of Tracxn, notes that Indian firms are looking for immediate access to established distribution networks and R&D expertise. Building these capabilities organically in India can take years, making acquisitions a faster alternative for global scaling.
The government continues to urge domestic investment, yet the numbers suggest otherwise. As Indian firms look to build their future, their balance sheets are increasingly being deployed in markets that offer more stable regulatory and industrial frameworks.
The push to globalize is becoming a necessity. Whether this trend will lead to long-term success for India Inc remains to be seen, but the intent is clear: they are ready to grow where the conditions are most favorable.
