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 $26 billion across 649 transactions during the first three quarters, as per the EY India M&A Report Q3 2025. The upswing comes despite persistent global macro volatility, showing sustained investor confidence and India’s position as one of the world’s most dynamic transaction markets.

India’s deal market showed 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 both PE and M&A have seen a rebound from the previous quarter. “The remarkable $26 billion in deal value, fuelled by strategic big size transactions across key sectors, highlights robust investor confidence. One of the most remarkable deals in Q4 2025 is the announced acquisition of RBL Bank by Emirates NBD, the largest foreign direct investment transaction in the Indian financial services sector to date, exemplifying the increasing attraction of the sector.” 

Boost to India’s deal-making landscape

According to the latest EY India M&A report, Q3 saw the total deal value surge to $26 billion, up 19% sequentially and 37% as compared to Q3 2024, signalling renewed confidence even amid global uncertainty. 

Highlighting a strong domestic consolidation trend, accompanied by active cross-border deals, Q3 2025 saw a total of 280 M&A deals recorded, with domestic transactions comprising 203 deals. Outbound deals numbered 41, while inbound deals numbered 36. 

The report says a landmark inbound deal that happened at the beginning of Q4 2025 was Emirates NBD’s announced acquisition of a controlling stake in RBL Bank through a primary infusion of around $3 billion (Rs 26,850 crore). 

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 $1 billion for a 43% stake in Samman Capital, marking a significant deal in the NBFC 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. 

Automotive leads value, tech leads volume

The automotive sector took the lead in value terms, powered by Tata Motors’ $4.45 billion outbound acquisition of Iveco. 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.

Technology continued to dominate deal volume with 119 transactions, up from 98 in Q3 2024 and 78 in Q2 2025.

Policy tailwinds and the next growth curve

The EY report says the government’s calibrated approach to liberalising 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 heightened pressure on MSMEs, textiles and engineering goods, creating uncertainty for export-linked businesses. However, India is in active discussions with the US to expand market access and diversify and strengthen its trade ties with the European Free Trade Association (EFTA) agreement, taking effect and ongoing discussions with the UK, the Gulf Cooperation Council (GCC).