Private Equity Investments in India Reach $15 Billion in 2024, Witnessing 46.2% Growth
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New Delhi, Jan 8 (NationPress) Fueled by sectors including healthcare, pharmaceuticals, consumer industries, and technology -- in a stable political environment and supportive policy landscape -- private equity (PE) investments in India soared to $15 billion in 2024, representing a 46.2% rise from the previous year, as per a report released on Wednesday.
The growth is attributed to India's expanding middle-class population, a robust startup ecosystem, and a thriving IPO market, providing plentiful opportunities for investors, as highlighted in data shared by LSEG, a global leader in financial markets infrastructure and data services.
“India continues to be one of the premier markets in the Asia Pacific for financial sponsor activity, capturing at least 28% of the region's total equity investments during this timeframe, a significant increase from 15% market share the prior year,” stated Elaine Tan, senior manager at LSEG Deals Intelligence.
Over the last three years, total PE funds accumulated reached approximately $23 billion, designated for investment in India.
“Supportive government initiatives, projected global monetary easing, a variety of sector opportunities, and an increasing focus on integrating ESG into growth strategies are among the primary factors anticipated to propel private equity activity in India in 2025,” the report noted.
Recent forecasts from global brokerages and financial institutions suggest that the Indian economy is expected to benefit from a stable political landscape, supportive policy environments, the impacts of production-linked incentive (PLI) programs, opportunities arising from shifts in the global supply chain, and government prioritization of infrastructure investments.
The Indian macroeconomic outlook remains robust among major markets, aside from growth concerns. The Current Account Deficit (CAD) has shown significant improvement and is projected to be 1% for FY25.
Additionally, strong services exports and healthy remittance inflows are likely to keep the country's CAD within a secure range during the current financial year (FY 2024-25), according to a Crisil report.
Most domestic macro and micro indicators remain stable. Given these conditions, the domestic equity market is concentrated on earnings, as per industry experts. Government expenditure has resumed, employment figures are rising, and supply constraints are diminishing.
