India's dealmaking landscape experienced a notable transformation in the first quarter of 2026, with 686 to 710 deals valued between $16–20 billion, despite a staggering 48% decline in total deal values compared to the previous quarter. The drop was largely attributed to a significant decrease in large transactions, with only two billion-dollar deals worth $4.1 billion recorded, down from seven deals worth $15 billion in Q4 2025. Investors are now prioritizing capital efficiency over aggressive expansion, leading to a focus on mid-sized, scalable businesses. Notably, private equity remained resilient, with 415 deals worth $9.1 billion, although the average deal size decreased from $36.3 million to $21.8 million. The retail and consumer sectors led the activity with 145 transactions, while the IT and ITES sector emerged as the largest by value, accounting for 22% of total deal value. Outbound M&A activity also showed strength, with 56 transactions contributing significantly to total M&A value, reflecting growing confidence among Indian firms for international expansion. Overall, despite the moderation in deal values, the underlying momentum indicates sustained confidence in India's long-term growth prospects.