The build-up to another PE wave

Current state of the Private Equity landscape

Recovery in optimism and revival in confidence has shaped renewed interest in India’s growth story. Domestic events supported by global macro-economic factors have helped create a conducive environment to propel the country’s growth trajectory. Growing domestic consumption, results of the recently concluded general elections that gave stability at the Center and declining global commodity prices has created a trifecta to position India as one of the top investment destinations in the world.

Private equity investments have become a part of emerging India’s growth for over a decade. During this time, numerous events and circumstances have shaped the investment climate in India. Even during the brief lull in perception of India as an investment destination, equity funds continued to find value and support growth, albeit in a moderated manner. Conclusion of the world’s largest general elections and emergence of a stable government with clear reform indicators, India is once again on the global investor’s radar. The country’s growing global stature and perception of value residing within the fabric of the economy is once again encouraging investments into the country. Such enabling factors combined with global macroeconomic cues are expected to power India’s GDP growth rate to over 6% in 2015 according to The International Monetary Fund (IMF) and World Bank. In a nutshell, optimism has returned to the investment environment.

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