India witnessed a significant increase in strategic mergers and acquisitions (M&A) deal value, reaching $113 billion in 2025, marking a 42% rise from the previous year. The surge was primarily fueled by robust domestic dealmaking, constituting 60% of the total deal value, and a substantial surge in inbound activity, which soared over 300% year on year. Foreign investors notably targeted financial services and technology assets, as highlighted in a report by Bain & Company.
The report underscores that India’s M&A landscape benefited from stable macroeconomic fundamentals, favorable demographics, and cost competitiveness, fostering heightened domestic consolidation and increased inbound interest. Additionally, outbound deal value surged by 83% year-on-year, reaching $24 billion.
On a global scale, M&A activity is poised to maintain its momentum in 2026, following a 40% increase to $4.9 trillion in 2025, the second-highest deal value on record, according to Bain & Company. A survey of 300 M&A executives revealed that 80% anticipate sustaining or boosting deal activity in 2026, driven by favorable macro conditions and a growing backlog of private equity and venture capital assets awaiting exit.
Acknowledging the limitations of traditional business models in driving growth, industry leaders are gearing up for another robust year in M&A activity. Suzanne Kumar, executive vice president of Bain & Company’s global M&A and Divestitures practice, emphasized the urgency for companies to reinvent themselves amidst technological disruptions, a post-globalization economy, and evolving profit pools, with M&A playing a pivotal role in this reinvention in 2026.
The global banking sector witnessed a surge in M&A activity in 2025, totaling $212 billion in deal value, propelled by a conducive regulatory environment, supportive monetary policies, and the imperative for modernization to sustain growth. Furthermore, record consolidation was observed among oil and gas companies in 2025, aiming to enhance scale, reduce unit costs, and integrate value chains in response to challenges like fluctuating oil prices and escalating demand for natural gas. Software companies also made substantial acquisitions of AI assets in 2025, with nearly half of tech deals involving an AI component, a notable increase from the previous year.
