PE investments in India to touch $12 bn in 2014: IVCA

Says investor sentiment has improved following general elections and series of reforms by new government

Private equity investment in India is likely to touch a staggering $12 billion in 2014 primarily on account of reform measures taken by the government at the Centre.

In the first half of the year, private equity entities pumped in $6 billion in India.

“India is expected to witness investments worth $12 billion in 2014 by private equity players, double than the amount invested by them last year,” Indian Private Equity and Venture Capital Association (IVCA) President Arvind Mathur said.

He said this at the sidelines of a private equity conference here, which was attended by around 200 delegates coming from various countries, including India, China, Japan and various African nations.

Mathur said: “Investor sentiment in India has improved following general election results in May and a series of reform measures taken by the government.”

After three decades, a single majority government under Prime Minister Narendra Modi has come to power at the Centre.

Another expert, Ameet Patel Partner at Sudit K Parekh & Co has attributed rise in investor sentiments to “strong corporate-friendly government at the Centre, coupled with strong RBI Governor (who created foreign exchange reserves for the country) as well as equally strong securities market regulator Sebi —who have made some pro-active regulations.”

“Private equity investors are now looking India as a more investment friendly destination,” Mathur said.

Now, private equity industry is expected to contribute to the growth of the country’s economy on a larger scale than earlier, Patel said.

Listing out the sectors where private equity investment firms can invest in India, Patel said infrastructure, real estate and manufacturing are projected to see greater private equity activities, especially since the government is putting thrust on them.

Besides, mobile-banking and e-commerce are expected to attract huge investments.

The experts also advocated for Indian private equity players for investing in African nations and using Mauritius as a platform for such activity.

However, another experts Mahendra Swarup, Former President at IVCA and now an independent strategic insight provider said,”private equity players will follow a ‘wait and watch’ policy as they will wait for execution of the promises made by the government.