India’s M&A activity surges 37% to US$26 billion in Q3 2025, defying global volatility: EY India M&A Report

• India records US$26 billion in deal value across 649 transactions in the first nine months of 2025
• Automotive leads deal value on the back of Tata Motors’ US$4.45 billion Iveco acquisition; technology tops volumes with 119 deals.
• Mid-sized transactions and policy reforms drive India’s renewed M&A momentum.

Mumbai, 25 November 2025 India’s dealmaking ecosystem continued to show strong resilience in 2025, with total M&A value rising 37% from Q3 2024 to Q3 2025, reaching US$26 billion across 649 transactions during the first three quarters, according to the EY India M&A Report Q3 2025. The upswing comes despite persistent global macro volatility, demonstrating sustained investor confidence and India’s position as one of the world’s most dynamic transaction markets.

India’s deal market demonstrated both resilience and strategic maturity, marked by a sharp rise in mid-sized transactions and continued depth across key sectors. While global volatility persists, India’s domestic consolidation and strong policy environment have positioned it as one of the world’s most dynamic transaction economies.

Amit Khandelwal, Managing Partner, Strategy and Transactions, EY India and Africa region, said, “As we analyze the M&A landscape for Q3 2025, both PE and M&A has seen a rebound from the previous quarter. The remarkable US$26 billion in deal value, fueled by strategic big size transactions across key sectors, highlights robust investor confidence. One of the most remarkable deal in Q4 2025 is the announced acquisition of RBL Bank by Emirates NBD, the largest foreign direct investment transaction in Indian financial services sector till date, exemplifies the increasing attraction of the sector. India continues to remain a well-placed economy with strong GDP growth and inflation under control, creating a supportive environment for sustained deal activity. With Indian corporates maintaining healthy balance sheets, we expect increasing cross-border opportunities, further strengthening our prominence in the global M&A arena.”

Momentum has come back to India’s deal-making landscape

The third quarter of 2025 underscored India’s transactional strength. According to the latest EY India M&A report, total deal value surged to $26 billion- up 19% sequentially and 37% as compared to Q3 2024, signaling renewed confidence even amid global uncertainty. Alongside this rise in value, deal volume remained robust.

In Q3 of 2025, a total of 280 M&A deals were recorded, with domestic transactions comprising 203 deals. Outbound deals numbered 41, while inbound deals counted 36. This distribution highlights a strong domestic consolidation trend accompanied by active cross-border deals in both directions, underscoring a balanced and resilient deal-making environment. Indian corporates continue to adopt a very strategic view, acquiring assets in overseas markets, that help them diversify and fortify their share in key markets in an attempt to balance the volatility in trade flows unleashed by the evolving US policies on trade and tariffs.

A landmark inbound deal that happened in the beginning of Q4 2025 was Emirates NBD’s announced acquisition of a controlling stake in RBL Bank through a primary infusion of approximately US$3 billion (INR 26,850 crore). As the largest acquisition in Indian banking and the biggest foreign investment in financial services, this deal highlights confidence in India and the attractiveness of the Indian financial services sector.

Private equity activity also stayed healthy this quarter, with 369 investment deals and 81 exits. The largest PE transaction was recorded in September, when International Holding Company invested US$1 billion for a 43% stake in Samman Capital, marking a significant deal in the NBFC sector and underscoring continued investor interest in the Indian financial services sector.

Notably, July 2025 stood out with $11.8 billion worth of deals driven by a rise in mid-sized transactions that offset the moderation in mega-deals. The quarter saw 53 significant deals valued at $100 million or more, but only two exceeded the billion-dollar mark.

Sector trends: Automotive leads value, technology leads volume

The automotive sector took the lead in value terms, powered by Tata Motors’ $4.45 billion outbound acquisition of Iveco, highlighting India Inc.’s growing global ambitions. The consumer products and retail sector followed with $3.3 billion in transactions, while the life sciences sector recorded $2.5 billion across 46 deals, underscoring steady investor confidence with India’s healthcare and pharmaceuticals sectors.

Technology continued to dominate deal volume with 119 transactions—up from 98 in Q3 2024and 78 in Q2 2025—highlighting the continued rise of Indian technology and digital deals. Meanwhile, life sciences and consumer sectors demonstrated consistent investor interest through both strategic and PE inflows.

Policy tailwinds and the next growth curve

Policy reforms remain central to sustaining investor optimism. The government’s calibrated approach to liberalizing foreign investment is deepening capital participation and aligning with broader M&A and private equity trends in 2025.

The recent US tariffs of up to 50% on Indian exports have heightened pressure on MSMEs, textiles and engineering goods, creating uncertainty for export-linked businesses. However, India is in active discussions with US to expand market access and diversifying and strengthening its trade ties with the European Free Trade Association (EFTA) agreement taking effect and ongoing discussions with the UK, the Gulf Cooperation Council (GCC).

Notes to editors

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EY refers to the global organization and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.