Mergers – India Enters Era of Billion-Dollar Corporate Deals
Mergers – India’s dealmaking landscape is undergoing a decisive transformation, with billion-dollar transactions steadily shifting from rare events to a more familiar feature of the corporate environment. A mix of steady economic expansion, evolving regulations, stronger capital markets and sector-specific consolidation is reshaping how mergers and acquisitions unfold across the country. Recent data indicates that this is not a short-term spike but part of a broader structural change in India’s financial ecosystem.
From Occasional Mega Deals to a Steady Pipeline
For many years, India’s mergers and acquisitions activity was largely centered on mid-sized domestic transactions. Deals exceeding $1 billion were limited in number and typically involved foreign advisory firms and overseas lenders. That pattern began to change over the past two years, and the shift became more pronounced in 2025.
During the year, India recorded 963 M&A transactions with a combined value of about $60.2 billion, reflecting a 36 percent rise in total deal value compared with the previous year. More notably, the number of transactions valued at $1 billion or more climbed to 14, marking a 133 percent increase year-on-year. These large deals accounted for more than half of the total deal value, according to industry data compiled by Grant Thornton Bharat.
Financial services and industrial sectors were at the forefront of this surge. Among the most prominent transactions were MUFG Bank’s acquisition of a minority stake in Shriram Finance valued at roughly $4.45 billion, and Emirates NBD’s agreement to acquire a controlling stake in RBL Bank for nearly $3 billion. Such deals highlight a growing appetite for scale and strategic positioning within India’s banking and finance sector.
Big Four Firms Expand Role in High-Value Transactions
Another sign of change has been the increasing participation of major professional services firms in large mandates. Traditionally active in mid-market deals, firms such as EY, PwC, KPMG and Deloitte are now advising on transactions exceeding $500 million—territory that was once dominated by global investment banks.
Between October 2024 and October 2025, EY advised on seven deals valued above $500 million, while PwC and Deloitte also secured mandates in this segment. Their involvement spans complex financial and industrial transactions, including advisory roles in cross-border acquisitions and infrastructure consolidation.
The broader implication is that India’s advisory ecosystem is deepening. Domestic firms are building the expertise and institutional capacity needed to handle sophisticated, high-value transactions, reducing dependence on foreign intermediaries.
Economic Growth Fuels Consolidation
India’s sustained economic growth—hovering around 7 percent annually—has created fertile ground for consolidation. As corporate revenues and balance sheets expand, companies are increasingly pursuing mergers to achieve operational efficiencies, diversify revenue streams and strengthen market share.
Industry leaders note that billion-dollar transactions, once uncommon, are now emerging more frequently across infrastructure, financial services and manufacturing. Infrastructure expansion plans, rising capital expenditure and strategic investments by private equity firms are contributing to this momentum. In banking and financial services, both domestic and international players are seeking consolidation to improve capital efficiency and expand customer reach.
The trend is also visible in technology and industrial sectors, where companies are leveraging acquisitions to scale operations and enhance competitiveness in both domestic and global markets.
Regulatory Reforms Strengthen Financing Options
A significant catalyst behind the evolving deal landscape is the regulatory reform introduced by the Reserve Bank of India. Historically, domestic banks faced restrictions in financing acquisitions, leaving foreign lenders with a dominant role in funding large transactions.
Recent changes now allow Indian banks to finance up to 75 percent of an acquisition’s value, subject to prudential safeguards. The acquiring company must contribute the remaining equity portion. These revised norms broaden the funding base for large transactions and provide domestic financial institutions with a greater role in acquisition financing.
The shift is expected to reduce reliance on overseas capital and create more competitive financing structures within India. Reports indicate that major lenders, including State Bank of India, are exploring partnerships and strategies to expand their M&A financing capabilities under the new framework.
Capital Markets and Private Equity Add Momentum
India’s buoyant equity markets and active initial public offering pipeline have further strengthened the M&A environment. Companies now have more flexibility to raise capital, restructure debt or pursue share-based transactions. At the same time, private equity and private credit funds are increasingly willing to back large deals, particularly in infrastructure, manufacturing and technology.
The interplay between strategic investors and financial sponsors is reinforcing the scale of transactions. As industries mature and competition intensifies, consolidation becomes a strategic necessity rather than a choice.
Taken together, these developments suggest that India’s corporate sector has reached an inflection point. With supportive regulation, expanding advisory capabilities and abundant capital, billion-dollar deals are no longer isolated milestones. If current trends continue, large-scale mergers and acquisitions are likely to remain a defining feature of India’s growth story in the years ahead.