When the global economy is being battered, India emerges as a shining beacon of success. The country’s political order has become good, and investors are flocking to tap opportunities there. Limited Partners (LPs) have made record fresh commitments to private equity, private credit, venture capital and public market alternative investment funds (AIFs) focused on India in the first three months of the year, according to VCCircle estimates based on official data. Additionally, in Q2 2023, PE funds raised strengthened by 50% on a quarterly basis when compared with last quarter.
But what does this mean for the world of private equity (PE) and venture capital (VC)? Which sectors are set to take off?
The good news is that some of the pressures that burdened the markets are starting to ease. As the general economic sentiment in India turns positive, the country’s private equity industry has a real opportunity to regain its past vibrancy and move towards making an even greater impact on the economy.