India to attract larger pie of global capital , as funds shy away from China : Grant Thornton Bharat

The report Fourth Wheel by Grant Thornton Bharat reveals that 86% of private equity investors anticipate an increased allocation to India, driven by its strong GDP growth and public market performance. Despite global economic challenges, 50% of respondents expect a moderate rise in global fundraising over the next 12-18 months, with 67% predicting a gradual increase. India s favorable economic conditions make it an attractive destination for global capital, as investors shift exposure from China to India. India has emerged as a significant player in the global private equity landscape, accounting for 20% of all PE-VC investments in the Asia-Pacific region in 2023, up from 15% in 2018. The country s rise to the fifth spot in global GDP rankings underscores its growing appeal for both global and domestic private equity investors. Deal activity in India rebounded in 2024, with 643 deals worth $17.1 billion recorded in the first half of the year. Investors remain optimistic, with 48% predicting a robust deal pipeline over the next three years, driven by high-value deals in key sectors such as consumer, retail, healthcare, and technology. ESG considerations are becoming integral to private equity investment strategies, with 55% of respondents stating that ESG frameworks guide their investment evaluations. The trend towards sustainability is expected to drive long-term value creation. Private equity firms are adopting hands-on strategies to create value within their portfolio companies, leveraging their operational expertise to streamline processes, implement growth strategies, and drive long-term value. The role of technology, particularly AI, is expected to be transformative for the private equity sector, enhancing due diligence, portfolio management, and investment decision-making. In the next three years, the consumer and retail sectors are expected to lead private equity deal volumes, followed by healthcare, financial services, and IT/technology. Investors are keen to capitalize on India s

Source: thehindubusinessline.com
Published on 2024-09-18