Taking Over Europe: How Indian Companies Are Redefining Globalisation

--Priyamvada Lonial, Legal Specialist

Over the last decade, global business dynamics have been slowly reshaped by a shift ever so silent yet powerful. Indian companies, which are usually seen as service providers or outsourcing partners, are now taking over the global stage in a totally unexpected manner, i.e. by acquiring companies, brands, and innovative technologies across Europe. And they’re making these moves smartly, strategically, and intentionally.

This isn't just about globalization, but redefining the global game altogether.

Case in Point: India’s Growth Trajectory

India’s transformation from an agrarian economy into the world’s fifth-largest economy has been astonishing. With ever-growing service sectors like IT, financial services and telecommunication, the Indian economy has witnessed a boom; with outbound FDI breaching the $37.7 billion mark in 2024 (which is a sharp 17% increase from the previous year.) A significant chunk of that outbound FDI has been steadily flowing into European markets.

But Indian companies are not expanding just for the purpose of scaling operations. They’re acquiring with strategy and precision, all while looking out for innovative technology, robust supply chains, well-known names, and new markets. Europe offers all this and more.

Why Europe

Europe remains one of the world’s wealthiest single markets, which boasts of a consumer base with high purchasing power, and stable legal and regulatory frameworks. At nearly 450 million consumers and a trade relationship with India totalling almost $160 billion in 2024, it has slowly yet surely become an obvious destination for firms looking to scale globally. However, this goes beyond market size. The EU can offer a plethora of benefits to Indian companies, including legacy brands, well-set business networks, robust R&D processes, and infrastructure that’s touted as the best of the best.

So, instead of building from zero, Indian companies can, and are leveraging upon mergers and acquisitions (M&A) to gain immediate access to mature markets. These acquisitions are not just about material assets, but local expertise, trust factor, and organic relationships which have been built over the years.

The Benefits of Smart Acquisition

While they may sound daunting, mergers and acquisitions actually come with plenty of benefits; particularly for those who acquire smart. Among the most obvious and immediate benefits are:

Rapid Market Entry:
Acquisition of trusted, well-known, and established brands can save the time, effort, and capital invested in attempts to devise market entry strategies, building customer trust with one-on-one interactions, etc.
Access to Local Expertise:
With skilled and experienced professionals in tow, entrepreneurs can become more familiar with consumer behaviour, compliance, logistics, and the overall business etiquette.
Strategic Gateway to New Markets:
If entrepreneurs play their cards smart, they can expand to even more markets in the long run. For instance, acquiring an automobile business in Germany can provide easy access to CEE nations, which have an up and coming automotive industry. In a nutshell, each acquisition should be a well-planned move in a broader global game.

The Power of Technology Transfer

While market access may be one of the first and most obvious reasons of business acquisitions, another key factor driving many of these acquisitions, especially in today’s technology-centric world, is access to high-end technology and innovation pipelines. Let us look at the example of Infosys acquiring The German company in-tech allowed it to expand its R&D capabilities in automotive software and embedded systems. Similarly, Indian pharmaceutical firms are, and have been smartly using M&A in Europe as a tool to move up the ladder and subsequently enter the more niche areas like biotechnology, etc.

However, this is not a one-way transaction. European companies benefit equally from India’s deep digital expertise, innovative practices, and cost-effective means. This combination gives rise to a powerful synergy that has the potential to revolutionise industries at a global level.

Talent and Culture: Building Hybrid Organizations

While the benefits of cross-border transactions are limited to assets as per the majority, one of the key aspects is access to high quality talent. Indian companies gain access to Europe’s highly skilled and diverse labor force, comprising engineers, designers, and scientists. This becomes particularly important, keeping in mind the fact that the EU has plans to train 20 million ICT professionals by 2030, and Indian firms are positioning themselves strategically to tap into that talent pool. However, success is heavily dependent on cultural integration. Hence, it becomes crucial to ensure that the same is done mindfully, and on the basis of a well-structured roadmap or strategy.

Creating a Global Identity

Brand name is something which takes years, even decades to build. But, it can be done in no time, thanks to strategic M&A. Let’s take the Tata-JLR deal for example. When Tata acquired Jaguar Land Rover in 2008, it wasn’t just another deal, but one which brought Tata huge credibility. Similar moves by TVS (by acquiring Norton Motorcycles) go on to show how Indian companies are using brand acquisitions to tap into premium markets, command higher margins, and win over global consumers.

The Added Bonus: Incentives

Europe also has something which businesses look for: legal and regulatory stability.

From IP protection and patent boxes to transparent regulatory frameworks and R&D tax incentives (like France’s 25% cash back), Europe is an ideal environment for companies seeking to innovate and expand safely.

With the anticipated EU–India Free Trade Agreement on the horizon, things could get even more favourable in the form of reduced tariffs, streamlined data flows, and greater labor mobility for Indian professionals.

Risk Management and Strategic Resilience

Lastly, Indian firms are getting smarter about managing the risk factor too. By diversifying their portfolios across geographies and sectors, they’re protecting themselves against domestic slowdowns or global shocks. Deal structures are also evolving, with earnouts, post-merger integration plans, and having in place expert advisory teams now being common practice. In 2024 alone, Indian companies made over 100 outbound deals. This isn’t a passing trend. It’s a strategic shift.

Conclusion

This wave of outbound M&A is about to usher in a new era of Indian talent shaping the global landscape instead of merely working at the back-end. If the last wave of globalization was defined by Western MNCs expanding into India, this wave is all about Indian SMEs and entrepreneurs making a name for themselves in the West.

Taking over Europe is no longer a myth or a dream, but a reality which is coming to life through strategic partnerships, innovation, and a new sense of leadership. India isn’t just participating in globalization anymore. It’s driving it.