Indian billionaires buy foreign companies as growth slows at home
Indian firms are spending more on overseas takeovers as domestic growth and private investment stay weak. Big deals include Sun Pharma's $11.75bn Organon purchase and Tata Motors' Iveco buy.
Intelligence analysis by GPT-5.4 Mini
A new wave of outbound acquisitions is being driven by Indian companies seeking markets, technology, brands and supply-chain resilience abroad, even as India's domestic investment climate remains sluggish. Analysts say the pattern reflects both opportunity overseas and frustration at home.
Some big Indian companies are buying businesses in other countries because growing at home is getting harder. It is a bit like a shop owner opening new branches in other towns when the local street is too crowded or slow.
The story says these companies want new customers, better tools, more know-how, and safer supply lines. Buying a foreign company can be faster than building everything from scratch.
But these buys can be risky if they cost too much or do not work out well. That is why this wave matters: it shows Indian money is traveling abroad while the home economy is still trying to speed up.
Analysis
What is happening
Indian companies are stepping up foreign acquisitions and greenfield investments. The article highlights Sun Pharmaceuticals' $11.75bn purchase of Organon & Co, Tata Motors' $4.4bn acquisition of Iveco, Coforge's $2.35bn buy of Encora, and Bajaj Group's 23% stake in Allianz SE.
Why now
Consultancy Grant Thornton says 162 Indian companies spent more than $18bn on outbound acquisitions in 2025, a 34% rise from a year earlier. The story links this surge to a weaker domestic backdrop: foreign portfolio investors have been pulling money out, net FDI has slowed, and private sector investment remains subdued despite government incentives. India's chief economic advisor, V Anantha Nageswaran, is quoted saying corporate profits rose strongly after Covid, but private capital formation has still been disappointing.
What is different from the last boom
Analysts say the current wave is less about prestige and more about strategy. Companies are looking abroad for markets, distribution, technology, R&D expertise and easier access to working capital. Saurabh Mukherjea says some firms are also moving production overseas because land and financing can be easier to arrange in places like the US. Neha Singh of Tracxn says stronger balance sheets and better global funding access are helping the trend.
Risks and implications
The article also warns that overseas deals can go wrong, citing Tata Steel's Corus purchase as a long-term burden. Another striking point is that Indian companies still largely pay cash for big foreign takeovers, which increases financial risk. Even so, the article argues the trend is likely to continue, helped by trade deals with the UK, Europe, Australia and others that could encourage more outbound investment.
Key points
- Sun Pharma agreed to buy Organon & Co for $11.75bn, the biggest overseas acquisition by an Indian company in nearly two decades.
- Grant Thornton says 162 Indian companies spent more than $18bn on outbound acquisitions in 2025, up 34% from last year.
- Analysts say the motive is increasingly strategic: markets, brands, technology, R&D and supply-chain resilience.
- Weak private investment and slowing foreign inflows at home are part of the backdrop.
- The article says big cash deals can be financially risky, and past overseas acquisitions have sometimes gone badly.
