India’s M&A Resurgence: Why Strategic Sectors Like Renewables, Healthcare, and Tech Are the New Frontline for Investors

The Indian market is no longer a sleeping giant—it’s a roaring lion, and investors who ignore its M&A frenzy are missing the next wave of capital reallocation. From renewables to healthcare and tech, India’s strategic sectors are becoming the epicenter of global dealmaking, driven by a perfect storm of policy tailwinds, demographic demand, and a maturing ecosystem for high-impact investments. Let’s break down why this is the moment to lean in.

Renewables: The Energy Transition’s Golden Child

India’s renewable energy sector is no longer a niche play—it’s a full-blown gold rush. In H1 2025 alone, the power sector dominated M&A with a staggering $8.5 billion in deal value, with renewables accounting for 80% of that total [1]. This isn’t just a blip: energy transition investments in India have surged to $62 billion since 2017, with renewables claiming 89% of the deal value during this period [4].

Why the frenzy? For starters, India is now the fourth-largest renewable energy market globally, with over 60 marquee global investors actively deploying capital [1]. The government’s ISTS waiver (reducing transmission charges for renewables commissioned by 2025) and its 500 GW renewable capacity target by 2030 are turbocharging this momentum [3]. Strategic buyers are snapping up solar, wind, and green hydrogen assets not just for growth but to lock in long-term energy transition value.

Healthcare: A $320 Billion Opportunity in the Making

India’s healthcare sector is on a tear, fueled by a population of 1.4 billion and a government pushing universal coverage via Ayushman Bharat. The sector is projected to hit $320 billion by 2028 at a 12% CAGR, and M&A is the engine driving this growth [5].

Take Blackstone’s $1 billion buyout of Care Hospitals or Temasek’s $2 billion stake in Manipal Health Enterprises—these aren’t just big numbers; they’re signals of a sector consolidating to meet rising demand. Digital health is the cherry on top: MediBuddy’s acquisition of vHealth in H1 2025 is a textbook example of how tech is democratizing access to care in underserved regions [5]. With India’s pharma and medtech startups gaining global traction, this sector is a no-brainer for capital reallocation.

Tech: The Digital India Story is Just Getting Started

India’s tech sector is rewriting the rules of innovation. In H1 2025, tech accounted for 21% of all M&A deals in the country, with 135 transactions already matching the full-year total of 2024 [2]. From AI-driven startups to cloud infrastructure, investors are betting big on India’s digital transformation.

Accenture’s purchase of TalentSprint (a leader in AI and data science education) and Movate’s acquisition of Prescience (an AI solutions firm) highlight the sector’s focus on skilling and automation [4]. The government’s $10 billion semiconductor scheme and the India AI initiative are further fueling this fire [5]. For investors, this isn’t just about tech—it’s about capturing the next generation of global innovation.

The Bigger Picture: Capital Reallocation in Action

What ties these sectors together? Strategic capital reallocation toward industries where India’s demographic dividend, policy push, and global demand align. Renewable energy is the backbone of the energy transition, healthcare is a necessity in a rapidly aging population, and tech is the engine of India’s global competitiveness.

While recent export tariffs have introduced some noise, the underlying trend is clear: India’s M&A market is a high-velocity train, and these three sectors are the front cars. As one source puts it, “India’s M&A landscape isn’t just growing—it’s evolving into a mature, investor-friendly ecosystem where value creation is the norm” [1].

Source

[1] Navigating the M&A landscape of India: Insights of H1 2025 [https://www.ey.com/en_in/insights/mergers-acquisitions/navigating-the-m-a-landscape-of-india-insights-of-h1-2025]
[2] M&A in India 2025: Valuations and Market Sentiment [https://aventis-advisors.com/ma-in-india/]
[3] What's holding India back in its renewable energy transition? [https://ieefa.org/resources/whats-holding-india-back-its-renewable-energy-transition]
[4] India's US$62 billion energy transition investments [https://www.ey.com/en_in/insights/energy-resources/how-india-green-investments-are-driving-the-energy-transition-in-2025]
[5] How India's H1 2025 M&A Deal Value Held at $50.5B [https://www.ey.com/en_in/newsroom/2025/08/india-s-m-a-activity-holds-ground-with-us-dollor-50-point-5-billion-in-deal-value-in-h1-2025]