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Private equity investments in India surge to $15 billion in 2024, marking 46.2% growth

Private equity (PE) investments in India soared to $15 billion in 2024, reflecting an impressive 46.2% growth compared to the previous year. This surge was fueled by sectors such as healthcare, pharmaceuticals, consumer-related industries, and technology, supported by a stable political climate and a favorable policy environment, according to a report released on Wednesday.

India’s expanding middle-class population, a thriving startup ecosystem, and a robust IPO market provided abundant opportunities for investors, as highlighted by LSEG, a global financial markets infrastructure and data provider.

“India continues to be a top market for financial sponsor activity in the Asia Pacific region, accounting for 28% of the region’s total equity investments during this period, up from 15% the previous year,” said Elaine Tan, Senior Manager, LSEG Deals Intelligence.

Over the past three years, total PE funds raised for deployment in India reached approximately $23 billion.

The report emphasized that “favorable government initiatives, anticipated global monetary easing, diverse sector opportunities, and the rising interest in integrating ESG into growth strategies are key factors expected to propel private equity activity in India in 2025.”

Stable Political Climate and Policy Environment to Drive Indian Economy in 2025

Projections by global brokerages and financial institutions suggest that the Indian economy will continue to benefit from a stable political scenario, supportive policy measures, the impact of production-linked incentive (PLI) schemes, shifts in global supply chains, and increased government infrastructure spending.

India’s macroeconomic indicators remain strong among major markets, except for the growth trajectory. The Current Account Deficit (CAD) has significantly improved and is projected to be around 1% for FY25.

Additionally, robust services exports and steady remittance inflows are expected to keep the CAD within safe limits during FY 2024-25, according to a report by Crisil.

Domestic macro and micro indicators are stable, with resumed government spending, rising employment, and easing supply bottlenecks. These factors have helped maintain investor confidence, with the domestic equity market remaining focused on earnings growth, experts added.

(Inputs from IANS)

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Last Updated: 22nd Jan 2025