India's Deal Market Sees Sharp Decline in Q2 2025: PwC Report

India's deal investment activity experienced a notable downturn in Q2 2025, with both the number and value of deals suffering significant declines. According to a PwC India report, mergers, acquisitions, and private equity investments fell sharply compared to the previous quarter, marking the largest drop in six quarters.

India experienced a significant drop in deal investment activity during the second quarter of 2025, as reported by PwC India. After achieving a peak of 867 deals in the preceding quarter, the volume of deals fell by 20% to 697 in Q2 2025. Concurrently, the value of these deals decreased by 22%, from $33.5 billion in Q1 to $26.2 billion in Q2.

The mergers and acquisitions (M&A) sector bore the brunt of this downturn, with transactions plunging from 413 to 300, representing a sharp 27% decline. This marks the highest quarterly drop in the past six quarters, halting the positive growth trend that had commenced in Q1 2024. Similarly, private equity (PE) investment deals declined by 13% from 454 deals in the previous quarter to 397 in Q2 2025.

The overall value of M&A and PE deals also reflected this downward trend, with M&A transactions falling 18% to $15.2 billion. Likewise, PE investments faced a significant drop in value, declining by 26% to $10.9 billion from $14.8 billion in Q1 2025. This represents a cautious approach in the private equity space. Despite this, the financial services sector achieved the highest deal value at $4.1 billion, aided by larger transactions, whereas the retail and consumer segment led in volume with 116 deals.

(With inputs from agencies.)