Instead of looking at established companies, private equity industry in India should look at the opportunity to support manufacturing industry in India, finance minister P Chidambaram told private equity fund managers today. While talking at the private equity conference in New Delhi, FM has urged the PE industry to support country’s growth through supporting more new ventures in manufacturing industry.
“In the US, the manufacturing industry is on a comeback. The revival of automobile industry is a good example. Similarly, in India, we need new products, new designs across sectors and which can be done with the support of private funding such as PE and venture capital money,” Mr Chidambaram said here.
Explaining the importance of venture capital funding for India’s growth, finance minister has asked the VC industry to find out 500 new upcoming manufacturing companies across sectors, make investments and mentoring them well. “Some of them may fail. But the rest will be groomed with ethical behavior and come out as good entrepreneurs,” he said.
Apart from making profits, Indian PE fund managers will have pride on building the future country by supporting the upcoming projects, he said while speaking at India Private Equity & venture Capital (IVCA) conclave in New Delhi today.
Private Equity plays a key role in India. But we need more capital as we remain attractive destination for global investors. We are doing our best to attract more capital, such as relaxing or removing FDI cap in various sectors, he added.
Fundamentally, nothing is wrong with Indian economy. The Lehman Brothers collapse had created the crisis which hit our economy too. Last year, we acknowledge the problems of high fiscal deficit and high inflation and assured these issues will be addressed. And in 2013, our fiscal deficit has been narrowed down to 4.8 per cent of our GDP from 5.8 per cent an year ago.
We want to reduce our dependence on imports such as coal and commodities to make things improve, FM added.
