Indian Billionaires Turn Overseas As Growth Slows At Home

A new wave of international acquisitions by Indian companies is reshaping the country’s corporate landscape, signalling a growing shift in how some of India’s biggest businesses view the future.

From pharmaceuticals and technology to automobiles and insurance, Indian firms are increasingly spending billions to buy foreign companies – not merely as symbols of global ambition, but as strategic moves driven by changing economic realities at home.

In late April, Sun Pharmaceuticals announced a massive $11.75 billion deal to acquire New York-listed healthcare company Organon & Co..

The acquisition became the largest overseas purchase by an Indian company in nearly 20 years and highlighted a trend that has quietly accelerated across corporate India.

A Growing Global Buying Spree

Sun Pharma’s move is only one part of a much larger story.

Earlier this year, Tata Motors agreed to acquire Italian vehicle manufacturer Iveco in a deal valued at $4.4 billion.

Indian technology company Coforge purchased Silicon Valley-based AI firm Encora for $2.35 billion, while the Bajaj Group expanded its global reach by buying a 23% stake in insurance giant Allianz.

According to consulting firm Grant Thornton, Indian companies completed 162 outbound acquisitions in 2025 worth more than $18 billion – a 34% increase compared to the previous year.

“We could cross $15bn in deal value in just the first half of this year,” said Sumeet Abrol, partner and national leader at Grant Thornton.

Echoes Of India’s Earlier Global Expansion

The surge has reminded many observers of the aggressive overseas expansion undertaken by Indian conglomerates in the early 2000s.

Back then, companies like the Tata Group made global headlines with ambitious purchases such as Jaguar Land Rover and Corus Steel.

But analysts say the motivations behind today’s deals are different.

Two decades ago, India’s economy was booming and corporate confidence was riding a powerful growth wave. Today, Indian businesses are navigating a far more uncertain domestic environment.

The country has recently faced slowing foreign direct investment, weak private sector spending and an outflow of foreign portfolio investors despite government incentives designed to encourage domestic investment.

India’s Chief Economic Adviser V Anantha Nageswaran recently acknowledged the disconnect between strong corporate profits and weak local investment activity.

“Corporate profits [of India’s top 500 companies post-Covid] grew at 30.8% per annum. But still, our overall capital formation rates from the private sector have been disappointing,” he said at a policy conference.

Why Companies Are Looking Abroad

For many Indian firms, expanding internationally now offers advantages that are becoming harder to find domestically.

According to investment manager Saurabh Mukherjea, Indian businesses are increasingly frustrated by challenges surrounding industrial land, financing and infrastructure within India.

“There is plenty of Indian money heading abroad,” Mukherjea said.

“Even among the companies that we own in our portfolio, many are setting up greenfield factories in the US and other places where industrial land is almost free and accessing working capital is much easier than here.”

The movement is not limited to India’s corporate giants.

Mukherjea noted that dozens of smaller Indian companies are also quietly building factories overseas or pursuing smaller acquisitions to strengthen their global position.

Technology, Talent And Supply Chains

Experts say many of these deals are designed to secure strategic advantages rather than simply boost prestige.

Neha Singh, co-founder of data intelligence company Tracxn, said overseas acquisitions allow Indian firms to access advanced technology, research capabilities, global brands and established distribution networks much faster than building them from scratch.

“Indian companies are increasingly looking overseas to access markets, brands, technology capabilities, R&D expertise, and established distribution networks that may otherwise take years to build organically,” Singh explained.

Global trade tensions have also played a role.

As tariffs, supply chain disruptions and geopolitical rivalries increasingly shape international commerce, many companies are looking to diversify production and secure more stable international operations.

Not Every Overseas Bet Pays Off

Still, international expansion comes with serious risks.

Some of India’s most famous overseas deals have produced disappointing results.

Mukherjea pointed to Tata Steel’s acquisition of Corus Steel as an example of a deal that became financially burdensome for years.

He also highlighted another challenge facing Indian companies: most still rely heavily on cash to fund acquisitions rather than using stock-based transactions common among Western corporations.

Even Sun Pharma’s massive acquisition was structured as an all-cash deal – a move that can expose companies to significant financial pressure if economic conditions worsen.

A New Generation Thinking Globally

Despite the risks, analysts believe the trend of outbound acquisitions is likely to continue accelerating.

India’s recent free trade agreements with countries and regions including the United Kingdom, Europe and Australia could encourage even more overseas investments in the coming years.

Mukherjea believes a new generation of wealthy Indian business heirs is also reshaping investment priorities.

Many younger corporate leaders now live, study and build networks abroad, making international investments feel increasingly natural.

He also pointed to the long-term weakness of the Indian rupee against the US dollar as another factor influencing investment decisions.

Domestic Challenges Remain

At the same time, India continues to struggle with sluggish domestic demand, cautious private investment and growing uncertainty around employment.

The rise of advanced AI technologies is also creating fresh concerns about the future of white-collar jobs in a country that has long relied heavily on outsourcing and technology services.

For the Indian government, the growing flow of money leaving the country presents a difficult balancing act.

Officials are eager to attract foreign investment and strengthen domestic growth, yet many of India’s own companies appear increasingly focused on building opportunities elsewhere.

Whether outbound acquisitions surpass last year’s $18 billion total remains uncertain amid ongoing geopolitical tensions.

But for many analysts, the long-term direction is already clear: as economic uncertainty deepens at home, Indian companies are increasingly seeking stability, growth and strategic advantages far beyond their own borders.