India deal landscape- Outlook 2026

Authored by Akhil Puri, Partner, Financial Advisory, Forvis Mazars in India

The outlook for M&A and PE/VC in India remains cautiously optimistic in 2026, building on the successes of 2024-25. 2025 was a year of sustained growth, combined with strategic discipline in M&A and private capital. While the global scenario remains fragile, India is retaining its spot as one of the bright spots in the region on strong macro fundamentals, favourable demographics, and committed policy support.

The India M&A market have remained resilient and mature amidst global turbulence in 2025. Let us look at the developments of the year 2025.

• Deal value was up 17.6% year-over-year, reaching USD66.7 billion in the first nine months of FY25.

• Strategic M&A reached USD43.3 billion across 691 deals, up 39.7% in value and 42.5% in volume.

•1,133 PE/VC deals valued at USD23.4 billion were announced, recording a 13.4% increase in volume despite a moderate dip in value.

Active domestic consolidation continued in healthcare, renewables, and consumer products, while inbound investments focused on digital infrastructure, manufacturing, and mobility. These deals reinforce confidence in the long-term fundamentals of India.

The macroeconomic context

The economy is projected to remain stable. India is entering 2026 with a sound structural foundation, according to the Ministry of Finance. GDP growth at close to 6.7 percent, continued structural reforms, moderate inflation, and elevated public capex are factors that have led to the scenario. Some of the key policy drivers include GST rationalization, infrastructure-led growth, and several initiatives under the Atmanirbhar Bharat scheme.

The USD10 billion (₹1-lakh-crore) RDI Fund, linking private capital with national Research & Development (R&D) priorities, is an important milestone in strengthening India’s innovation ecosystem in pursuance of the vision of Viksit Bharat 2047.

With bank credit growth moderating, non-bank financing and alternative assets have gained traction, which has diversified the channels of business funding and expanded the financial ecosystem.

M&A Outlook: Strategic and Value-Oriented

M&A activity is expected to be selective but steady in 2026, driven by strategic imperatives and not by expansion alone. Corporates are focusing on deals that enhance scale, technology, and efficiency.

We have observed some broad trends:

• Consolidation in manufacturing, infrastructure, and technology continues unabated.

• Acquisitions aligned with policy in energy, industrials, and digital infrastructure.

• Restructuring transactions: Strengthen competitiveness, unlock synergies

While global uncertainty is likely to dampen sentiment, domestic liquidity, policy stability, and healthy corporate balance sheets will support continued deal activity.

Private Equity and Venture Capital: Discipline and Depth

Private capital inflows into India have remained strong. Global and domestic funds have kept their commitment, supported by sizeable dry powder and a maturing exit environment.

Key PE/VC Trends:

• Steady deal flows: Macroeconomic stability and startup maturity continue to attract capital deployment.

• Active exits: The major routes taken within buoyant capital markets include IPOs, block trades, and secondary sales.

• Operational value creation: Focus on governance, technology adoption, and efficiency enhancements rather than pure financial engineering.

• Increasing domestic participation: National Investment and Infrastructure Fund (NIIF), Small Industries Development Bank of India (SIDBI), leading insurance companies, and family offices are widening their domestic investor base.

• Private credit growth: Amidst slow bank lending, private credit is emerging in areas of infrastructure, real estate, and healthcare.

• AI and Deep Tech: Generative AI is shaping both investment opportunities and deal execution through enhanced diligence and analytics.

Sectoral Outlook: What are the key growth drivers for 2026?

Financial Services & FinTech

Currently, India leads the globe in fintech adoption with 87% penetration. In general, investment is expected to go toward NBFC, Insurtech, and digital lending platforms on the back of regulatory clarity and demand for digital financial products.

Infrastructure & Real Estate

Continuing investments in logistics, urban infrastructure, and smart cities will be driven by government programs like PM GatiShakti and the National Infrastructure Pipeline. RERA and various policies toward affordable housing continue to pay dividends for the real estate sector, with steady growth in the residential and commercial categories.

Healthcare & Pharmaceuticals

With the sector anticipated to touch USD88.8 billion by 2030, investment will be focused on biotech, healthcare delivery, and digital health platforms. The broader insurance coverage under Ayushman Bharat continues to attract strategic and private capital.

Technology & Deep Tech

Powered by high-value manufacturing impelled by PLI and SEMICON India schemes, the IT and digital ecosystem of India are the core to its investment narrative. That said, AI, cybersecurity, and cloud solutions have continued to attract venture funding.

Renewable Energy & Electric Mobility

Renewable capacity is still on track to achieve the target of 500 GW by 2030, which has crossed 209 GW. The EV segment is gathering momentum under FAME and PLI schemes, drawing interest in battery tech, charging infrastructure, and sustainable mobility.

Consumer & E-commerce

The Indian e-commerce market is expected to treble by 2030, with a valuation of USD70 billion by 2024. The FMCG sector is evolving toward healthy and sustainable products, supported by rising rural consumption and digital retail channels.

Opportunities and Challenges

In 2026, India’s M&A and private capital markets will continue to be resilient, disciplined, and focused on opportunities. Activity will reflect the nation’s structural strengths-steady growth, evolving capital markets, and rising innovation capacity.

India presents a compelling landscape for deal making and sustained momentum, driven by strong domestic demand and consistent policy support. The expansion of private credit and the rise of local institutional capital are creating deeper pools of funding, while government-backed R&D incentives are fostering technological innovation across diverse sectors. At the same time, the increasing emphasis on sustainability and green investments is opening new avenues for strategic partnerships and capital deployment, positioning India as a dynamic market for both traditional and emerging opportunities.

However, there are challenges that needs to be factored in. Hurdles like persistent global volatility and valuation pressures weigh heavily on early-stage funding, making it harder for young companies to secure capital at favourable terms. Investors and businesses alike are also calling for greater regulatory clarity and stronger governance frameworks to ensure transparency and confidence in transactions. At the same time, execution risks loom large in capital-intensive sectors such as infrastructure and renewables, where the scale and complexity of projects can challenge timelines and returns. Together, these factors highlight the need for cautious optimism and sharper risk management in sustaining the deal momentum.

Investors will remain very selective and fact-driven, with a bias for scalable businesses with good unit economics backed by credible management.

While global uncertainty will temper short-term sentiment, India remains one of the most attractive investment landscapes in Asia. Where once growth at any cost would have been adequate, the narrative is shifting toward strategic value creation underpinned by technology, transparency, and operational strength-hallmarks of a confident, maturing market.

This outlook was published in The Hindu on 4 December 2025.