India's M&A Activity Rises 21.7% in First Half of 2026 Despite Geopolitical Uncertainty

India’s mergers and acquisitions (M&A) activity rose 21.7% in the first half of 2026, marking the second-strongest January-June period on record as companies pursued strategic acquisitions despite geopolitical uncertainty and the absence of blockbuster deals. The value of announced M&A transactions climbed to $89.1 billion in the six months ended June 22, from $73.2 billion a year earlier, according to Dealogic data. Deal volumes, however, fell 19% to 588 transactions from 726 in the corresponding period last year, indicating a market driven by larger transactions rather than a broad-based increase in activity. The first-half tally is the highest since 2022, when deal values touched a record $131.5 billion, buoyed by the nearly $60-billion merger between HDFC Ltd and HDFC Bank , one of the largest corporate transactions in India’s history. The latest figures suggest that while large deals continued to underpin overall values, activity increasingly shifted towards mid-market acquisitions amid a cautious global investment climate. “India’s deal market in H1 2026 has demonstrated structural resilience, even as aggregate deal values were constrained by the absence of mega transactions that defined the second half of 2025,” said Ketan Dalal, managing partner at Katalyst Advisors LLP. According to Dalal, the first quarter underscored this trend, with deal volumes remaining healthy despite the lack of large-ticket transactions. “Deals are increasingly emerging in the mid-market segment,” he said. Outbound dealmaking remained a bright spot. Indian companies announced several overseas acquisitions, led by pharmaceutical, technology and financial services firms. Key transactions included Sun Pharma’s acquisition of Organon assets for nearly $12 billion in April, Coforge’s acquisition of Encora, Emirates NBD’s $2.75-billion investment in RBL Bank through a majority stake acquisition, and Meta’s $900-million investment in fintech startup Cred. Investment banks also benefited from the pickup in activity. Citigroup topped India’s M&A advisory league tables during the first half, advising on transactions worth $27.5 billion. It was followed by Arpwood Capital, JPMorgan, Goldman Sachs and Morgan Stanley. Dealmakers said geopolitical tensions may have delayed some larger transactions. “The US attacks on Iran and the resulting tensions in the Middle East may have weighed on deal sentiment, although activity could accelerate in the second half of the year,” Dalal said. He added that currency volatility and regulatory bottlenecks continue to influence dealmaking decisions. “The stability of the rupee has a direct bearing on foreign investment flows, which remain an important driver of M&A activity. Long deal cycles and regulatory hurdles have traditionally acted as speed breakers, making reforms in these areas increasingly important,” he said. India remains one of Asia’s most active M&A markets, supported by strong corporate balance sheets, outbound expansion plans and sustained interest from global investors. However, the absence of mega deals has kept transaction values below the record levels seen in 2022.