India and Southeast Asia to Drive Asia-Pacific Industrial Deal Growth in 2026: PwC

Asia-Pacific is emerging as the sole bright spot in global industrial mergers and acquisitions, with deal volumes projected to increase by 2% in 2026, according to PwC’s mid-year M&A outlook. This stands in stark contrast to an anticipated 7% decline worldwide. The report highlights India and Southeast Asia as principal destinations for manufacturing investments, driven by the ongoing diversification of production and supply chains beyond China.

India’s Strategic Advantage The forecast reinforces India’s growing appeal as a manufacturing hub. PwC notes that India, along with Southeast Asia, will continue to attract capital as multinationals reorganise their supply chains to reduce tariff exposure and secure access to key markets. This aligns with the government’s Make in India and Production-Linked Incentive (PLI) schemes, which have already spurred investments in electronics, pharmaceuticals, and automotive sectors.工业制造业预计将跑赢全球大部分其他子行业，交易额将增长5%。在亚太地区，日本和韩国也可能出现与自动化、电池技术和电子产品相关的交易活动。然而，印度凭借其庞大的国内市场、不断改善的基础设施和人口红利而脱颖而出。

自动化和AI基础设施作为核心主题 普华永道的分析指出了明确的战略转变：制造业交易将越来越多地瞄准支持人工智能基础设施、电网韧性和自动化的资产。机器人技术、工业软件、传感器和互联系统成为焦点，因为它们能够提高生产力并减少对劳动力的依赖。采用高度自动化流程的工业制造商的中位数份额预计将从2023年的18%跃升至2030年的50%，这突显了自动化在投资战略中的核心地位。For India, this means opportunities in domestic automation firms, industrial software, and AI-enabled manufacturing. The country’s burgeoning startup ecosystem in industrial tech and SaaS could attract both venture capital and strategic acquirers.

Supply Chain Realignment The report highlights that companies are localising production and reorganising supply chains to mitigate geopolitical risks and tariffs. Corporate carve-outs and manufacturing businesses benefiting from localisation in India and Southeast Asia could offer attractive deal opportunities. However, cross-border transactions will remain uneven due to ongoing geopolitical uncertainty, tariffs, and shifting industrial policies.Implications for India’s Growth Story The PwC forecast is more than just a number—it signals a structural shift in global capital flows towards Asia-Pacific, with India at the forefront. As global manufacturers seek alternatives to China, India’s improving ease of doing business, skilled workforce, and expanding industrial base make it a compelling destination. The deal volume growth in industrials and services also reflects confidence in India’s long-term economic trajectory.

For investors and policymakers, the key takeaway is that India’s manufacturing sector is not just catching up; it is becoming an integral part of global supply chains. The emphasis on automation and AI also suggests that India must continue upgrading its industrial capabilities to remain competitive.Conclusion PwC’s data underscores a pivotal moment for Asia-Pacific industrial deal-making. India and Southeast Asia are set to capture a larger share of manufacturing investments as the world reconfigures its supply chains. For India, this represents both an opportunity and a challenge: to convert rising deal volumes into sustainable industrial growth and technological leadership.