Private equity investments in India have reached a two-year high in 2024, with a total of $15 billion invested, marking a 50% increase from the previous year. Despite a slight decrease in the number of deals, the growth in investments can be attributed to sectors such as healthcare, pharmaceuticals, consumer-related industries, and technology.
India’s expanding middle-class population, a robust start-up ecosystem, and a strong IPO market have provided significant opportunities for investors in the country. India remains one of the top markets in the Asia Pacific region for financial sponsor activity, accounting for 28% of the total equity investments in the region.
However, private equity funds raised in India saw a 29% decline in 2024, totaling $4.3 billion. Despite this decrease, the total PE funds raised over the last three years amounted to approximately $23 billion, earmarked for deployment in India.
Looking ahead to 2025, favorable government initiatives, anticipated global monetary easing, diverse sector opportunities, and a rising interest in integrating Environmental, Social, and Governance (ESG) factors into growth strategies are expected to drive private equity activity in India.
In conclusion, the private equity landscape in India is evolving, with investors showing increased interest in the country’s growing market and diverse sectors. The future looks promising for private equity investments in India, with a focus on sustainable and responsible investing practices.