India’s Resilient M&A Landscape in the First Half of 2025
India’s merger and acquisition (M&A) environment has shown robust performance in the initial half of 2025, despite global economic challenges and policy uncertainties. As outlined in the recent EY M&A report for H12025, the total deal value reached US$50.5 billion, indicating a 2% enhancement over the latter half of 2024, albeit a 17% decrease compared to the first half of 2024. This stability reveals an evolving investor approach favoring fewer, high-value strategic investments.
The volume of deals saw a 12% year-on-year reduction, with 1,285 transactions recorded as investors prioritized quality and scalability. The month of June 2025 highlighted this trend further. Although it emerged as the strongest in terms of deal value at US$8.4 billion—a 104% increase over May—it registered only 136 transactions, marking the lowest monthly count and a substantial 46% decline from the previous year.
According to industry insights, there is a clear investor shift towards fewer but more strategic investments. The increase in large-ticket deals, despite a decline in volume, indicates a focus on quality, informed by macroeconomic concerns and evolving regulatory environments.
H1 2025 witnessed 10 deals exceeding the billion-dollar mark—double of what was observed in each half of the preceding year. Despite the absence of notable marquee transactions, this trend highlights heightened consolidation and a cautious yet calculated deployment of capital.
Renewable Energy Leads the Charge
The Power sector has taken center stage in this M&A activity, with deals valued at US$8.5 billion. Notably, the Renewable Energy segment contributed approximately 80% of this total, reflecting a hefty increase from US$3.2 billion in H1 2024 and US$2.8 billion in H2 2024. This trend demonstrates a solid interest in sustainable investments. Strategic deals dominated this sector, comprising about USD 6.5 billion out of the total USD 8.5 billion—emphasizing an industry focus on long-term integration, core operation consolidation, and adherence to energy transition goals.
Currently ranked as the world’s fourth-largest renewable energy market, India has attracted over US$4 billion in foreign direct investment recently. With an installed capacity of 220 GW, representing 45% of the country’s energy mix, the sector offers an investor-friendly landscape. The participation of over 60 prominent global investors, a proven track record of profitable exits, and progressive policies are accelerating the transition towards Renewable Energy 2.0.
Industry experts highlight India’s accelerated energy transition fueled by increasing demand, government support, and innovative financing. The nation is advancing swiftly with substantial renewable rollouts, significant strides in electric mobility, biofuels, and green hydrogen development. The sector is poised for over US$1 trillion in investments over the next five years, providing a compelling opportunity for global investors.
Stable Interest in Consumer Products
Alongside renewable energy, the Consumer Products and Retail sector has demonstrated stability, leading in deal volume with 205 transactions. This number, compared to 218 in H1 2024 and 203 in H2 2024, underscores the enduring interest in consumer-focused enterprises, even amidst an evolving economic climate.
This resilience reflects the vitality and adaptability of India’s economy, promising significant opportunities despite broader global economic fluctuations. As the country continues to navigate and capitalize on strategic investments and sustainable growth avenues, its attractiveness as a hub for global investors only intensifies.
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