Private equity (PE) and venture capital (VC) investments in India began 2025 on a strong note, surging 37 per cent in January 2025 to $6.3 billion, compared to $4.5 billion in December 2024, according to a report by EY and the Indian Venture and Alternate Capital Association (IVCA).
However, investments were 9 per cent lower than in January 2024, when they stood at $6.9 billion.
The report highlights a favourable macroeconomic environment, strong fiscal health, and stable government policies as key drivers of India's PE/VC ecosystem. With volatility in midcap and smallcap indices declining, deal activity and closures are expected to rise.
"The recent market correction signals more balanced conditions ahead, reinforcing India\'s attractiveness as a leading PE/VC destination. International general partners will continue to shape the landscape, while the pullback in the startup segment presents unique opportunities, particularly in Tier-II and Tier-III cities, known for their untapped markets and cost advantages," the report said.
-- Jaden Mathew Paul/Business Standard
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