Parul
Deal activity in India rebounded in 2024 after a slowdown in 2023, with 643 deals worth $17.1 billion recorded in the first half of the year, said a new report, adding that investors are eyeing a robust deal pipeline over the next three years. Despite global economic headwinds, 50 per cent of survey respondents in the report anticipate a moderate increase in global fundraising over the next 12 to 18 months, with 67 per cent of them believing the increase will be gradual.
India’s favourable economic conditions position it well to attract a larger share of global capital, as funds reallocate their exposure from China to India, according to the report by Grant Thornton Bharat.
Investors remain optimistic, with 48 per cent predicting an exceptional level of deal activity over the next three years, driven by high-value deals in key sectors such as consumer, retail, healthcare, and technology, the report noted.
The concept of private equity being the ‘Fourth Wheel’ in India’s business landscape reflects its critical role alongside state-owned enterprises, Indian family businesses and multinationals.
This sector has emerged as a key growth driver, providing essential capital for entrepreneurship and innovation.
According to the survey report, 86 per cent of investors expect an increased allocation to India, driven by its robust GDP growth and strong public market performance,” the report mentioned.
It said that India is fast emerging as a significant player in the global private equity landscape, accounting for 20 per cent of all PE-VC investments in the Asia-Pacific region in 2023, up from 15 per cent in 2018.
The country’s leap to the 5th spot in global GDP rankings highlights its growing appeal for both global and domestic private equity investors.
“The role of technology, particularly artificial intelligence (AI), is expected to be transformative for the private equity sector. AI is already being utilised to enhance due diligence, portfolio management, and investment decision-making, providing firms with a competitive edge in an increasingly tech-driven landscape,” the report mentioned.
