New Delhi:
India has seen a tremendous surge in private equity investment due to the stable political environment and favorable policies along with sectors like healthcare, pharma, consumer industry and technology. According to a report released on Wednesday, private equity investment in India is expected to increase to $15 billion in 2024. This figure shows an increase of 46.2% compared to last year.
India becomes the first choice of investors
According to data from LSEG, a global financial market infrastructure and data provider, India’s rapidly growing middle class population, strong startup ecosystem and IPO market provided new opportunities to investors. “India remains a top market for financial sponsor activity in the Asia-Pacific region,” said Ellen Tan, Senior Manager, LSEG Deals Intelligence. India accounted for 28% of total equity investments in the region, up from 15% last year. “Much more than %.”
The total PE funds raised in the last three years have reached approximately $23 billion.
Investment increased due to government initiative
The report said that several government initiatives played a role in promoting private equity activity in India in 2025. These include favorable policies, changes in global supply chains, production-linked incentive (PLI) schemes and emphasis on infrastructure.
Indian macro remains strong in major markets except the growth segment. According to the CRISIL report, strong services exports and remittance flows have helped keep the current account deficit (CAD) under control. There has been a significant improvement in the Current Account Deficit (CAD). CAD is expected to remain at 1% during the financial year 2024-25.
Additionally, according to the CRISIL report, strong services exports and healthy remittance flows will help keep the country’s CAD in the safe zone during FY 2024-25.
India moving towards stable economy
Most domestic and global macro and micro indicators are stable. The domestic equity market is focused on earnings, while increased government spending and improving employment opportunities are boosting the economy. The problems related to supply are also reducing now. According to experts, due to all these positive indicators, private equity investment in India may increase even faster in the coming years.
