New Delhi, Jan 28 (NationPress) The value of India's mergers and acquisitions (M&A) transactions experienced a remarkable increase of 42% (year-on-year), reaching $113 billion in 2025, as highlighted in a recent report released on Wednesday.

This significant growth was largely fueled by vigorous domestic dealmaking, which represented 60% of the total deal value, along with a notable rise in inbound activities, soaring over 300% year-on-year. Foreign investors consistently targeted sectors such as financial services and technology assets, according to findings from Bain & Company.

The report indicates that the surge in India’s M&A activity can be attributed to stable macroeconomic fundamentals, favorable demographics, and cost competitiveness, all of which have spurred domestic consolidation and interest from abroad. Furthermore, outbound deal value escalated by 83% (on-year) to $24 billion.

On a global scale, M&A is anticipated to maintain its momentum into 2026 after a 40% increase, culminating in $4.9 trillion in 2025, marking the second-highest recorded deal value, according to Bain & Company.

A survey conducted among 300 M&A executives revealed that 80% of them foresee sustained or increased deal activity in 2026. The landscape remains favorable, bolstered by improved macro conditions and a growing backlog of private equity and venture capital assets poised for exit.

Industry leaders acknowledge that numerous traditional business models have reached the limits of their historical growth.

“The ingredients are in place for another robust year in M&A following last year’s near-record rebound,” remarked Suzanne Kumar, executive vice president of Bain & Company’s global M&A and Divestitures practice.

“Companies urgently need to reinvent themselves to navigate major forces such as technological disruption, a post-globalization economy, and shifting profit pools. M&A will be crucial in this reinvention in 2026,” Kumar emphasized.

Globally, banking M&A skyrocketed in 2025, achieving $212 billion in deal value, driven by a supportive regulatory environment, favorable monetary policies, and an urgent need for modernization to facilitate ongoing growth.

Additionally, oil and gas firms consolidated in unprecedented numbers in 2025, aiming to achieve greater scale, reduce unit costs, and enhance value chains to stay ahead amid fluctuating oil prices and historically high natural gas demand.

Moreover, software companies acquired an unprecedented number of AI assets in 2025, with nearly half of tech deals incorporating an AI element, up from one in four deals in 2024, as stated in the report.