New Delhi, Jan 21 (UNI) India’s deal-making ecosystem rises with total transactions volume reaching USD 133 billion across 2,658 deals during 2025, said Grant Thornton Bharat Annual Dealtracker 2025 in a statement released on Wednesday.
Deal volumes rose 21 per cent year-on-year, while deal values increased 13 per cent, reflecting growing investor confidence amid global economic volatility.
Despite geopolitical tensions, trade disruptions, and policy uncertainty in major global economies, India continued to attract sustained capital flows, supported by strong economic growth and improving market sentiment.
The year was marked by the return of large strategic transactions alongside active mid-market and private capital activity, reinforcing India’s position as a resilient and long-term investment destination.
Mergers and acquisitions activity touched historic highs in 2025, recording 963 transactions the highest annual volume on record with total M&A value reaching USD 60.2 billion, the strongest level seen in the past three years.
Fourteen mega deals valued at over USD 1 billion contributed USD 34.3 billion, accounting for 57 per cent of total M&A value and more than doubling the number of billion-dollar transactions compared to 2024.
Commenting on the deal activity, Shanthi Vijetha, Partner Growth, Grant Thornton Bharat, said, “The deal landscape in 2025 marks a clear inflection point for India, where scale, strategy, and selectivity have converged. The resurgence of billion-dollar M&A transactions, record domestic consolidation, and value-led inbound investments reflecting growing confidence in India as a long-term strategic market rather than a tactical allocation.”
At the same time, steady PE and VC deployment, alongside with a record-setting IPO market, reflects the depth and maturity of India’s capital ecosystem. As we move into 2026, deal activity is likely to be driven less by cyclical recovery and more by policy continuity, sectoral transformation and disciplined capital allocation positioning India for sustained value creation despite global uncertainty” Vijetha added.
Domestic mergers and acquisitions dominated volumes, accounting for 74 per cent of deal count, while inbound transactions, though fewer in number, contributed significantly to deal value through select large investments.
Outbound M&A activity remained resilient, with Indian companies investing USD 15.5 billion overseas to achieve global scale, access advanced technology, and diversify markets.
Manufacturing led M&A deal volumes during the year, while banking and financial services emerged as the largest contributor to deal value, supported by consolidation and strategic stake sales.
Policy-supported sectors such as energy, pharmaceuticals, healthcare, and infrastructure also recorded strong deal momentum. Activity accelerated sharply in the second half of the year, with the July–December period accounting for 65 per cent of total M&A value.
Private equity and venture capital investments also posted steady growth in 2025, with 1,506 deals valued at USD 36.8 billion, marking a 16 per cent increase in volumes and a 15 per cent rise in deal value over the previous year. Deal values showed greater concentration at the top end, supported by six billion-dollar transactions and 72 deals above USD 100 million, together contributing USD 24.9 billion. Average deal sizes remained stable at USD 24.4 million, indicating disciplined capital deployment.
Retail and consumer segments led private capital deal volumes, while banking and financial services accounted for the largest share of investment value.
Strong activity was also recorded in IT services, data-driven and artificial intelligence-led platforms, and real assets, reflecting sustained investor interest in long-term growth themes.
India’s public equity markets delivered a record performance during the year, with IPO and qualified institutional placement fundraising reaching USD 21.7 billion across 112 initial public offerings, the highest annual level in terms of both volume and value.
The strong IPO performance was supported by robust domestic liquidity and continued retail investor participation, despite global macroeconomic uncertainty.
The qualified institutional placement market moderated from the previous year’s peak but remained structurally strong, with 77 issuances raising USD 14.4 billion in 2025. Issuance levels stayed well above pre-2024 averages, highlighting the depth of India’s capital markets. UNI SAS RB 1940
