India Private Equity Market

the private equity (pe) market in india has been steadily growing over the last two decades and is projected to see further substantial growth in the coming decade. though the market size and growth rate vary significantly across regions, one thing has become increasingly clear – indian pe investors have become very active in the country, both in terms of domestic investments and outbound opportunities. pe investment into india have been primarily driven by four major issues - government policies, macro-economic conditions, the regulatory landscape and capital availability. in the past few years, the government of india has been extremely supportive of private investment, thereby creating a conducive environment for pe investments. to further incentivize such investments, the indian government has also been introducing various tax policies, such as reduction in capital gains tax rate on investment in listed companies, liberalized norms for foreign investments and waiver of long-term capital gains tax on investments in start-ups. the current macro-economic conditions in india have been favorable for private equity investments. the country has witnessed strong economic growth, a stable foreign exchange rate and falling inflation, enabling pe investors to leverage on their growth opportunities in the market. the regulatory landscape of indian market has also seen some major changes in the past and these are expected to further develop in the foreseeable future. on the other hand, capital availability has always been the major factor that defines the growth of any pe market. over the last years, indian pe investors have secured an adequate capital which has allowed them to significantly increase investments into the country. this influx of capital is projected to grow even further over the next decade. in summary, india is projected to remain a significant player in the global pe market. the availability of capital, the legal framework, the macro-economic conditions and the government policies, all promise to make india an attractive market for pe investment. with rising investments and growing number of opportunities, the private equity market in india looks strong and promising for the period 2018 to 2032.