India A Major Receiver of Asia's Private Equity Investments

Based on a research released on Wednesday, India received 20% of total private equity and venture capital (PE-VC) investments in Asia Pacific last year, making the country a "bright spot" amid the region's slowing capital flow.

According to a research prepared by consulting company Bain & Company in partnership with the Indian Venture and Alternate Capital Association (IVCA), India attracted $61.6 billion in investments last year, the third time it topped the $60 billion level.

In accordance with the 'India Private Equity Report 2022,' there will be over 2,000 deals in 2022, continuing the strong flow from previous years. Banking, financial services and insurance (BFSI), healthcare, energy, and manufacturing investments increased by 50% to $28 billion, owing to strong domestic consumer sentiment.

Investments in clean energy and electric vehicles totaled $8 billion, indicating a preference for ESG. Investments in consumer technology and IT/ITeS were down. Throughout the year, notable exits were made by healthcare investors.

"Long-term prospects of the Indian market continue to be bullish, in spite of the near-term global slowdown. Robust fundamentals of the Indian economy make it an attractive destination for private equity, evident from the fact that India crossed $60 billion in investments for a third time in a row,” said Arpan Sheth, Bain & Company Partner and co-author of the report, in a statement in Washington.

“India has also continued to increase its share of PE-VC investments in the Asia-Pacific region, with $1 of every $5 invested in the region being invested in Indian assets.”