India Remains Bright Spot in PE-VC Investments Despite Global Slowdown: Bain & Co Report

PE-VC investment landscape: India's PE-VC investment declined by 35% to ~$39 billion in 2023, yet it remained a bright spot in Asia-Pacific.

  • PE-VC investment landscape: India’s PE-VC investment declined by 35% to ~$39 billion in 2023, yet it remained a bright spot in Asia-Pacific.
  • Focus on traditional sectors: Despite the global slowdown, investments in traditional industries like healthcare, energy, and manufacturing continued to attract attention.
  • Outlook for 2024: PE-VC deal-making is expected to remain cautious, with traditional sectors like infrastructure and healthcare likely to see increased investments amidst supportive policy environments.

Despite a decline in PE-VC investments by 35% to around $39 billion in 2023, India retained its status as a bright spot in the Asia-Pacific region, according to a report by Bain & Co. The report highlighted a shift in focus towards traditional sectors like healthcare, energy, and manufacturing, indicating resilience amidst the global economic slowdown.

Looking ahead to 2024, the report suggests a cautious approach to deal-making, with traditional sectors expected to continue attracting investments due to positive fundamentals and supportive policy environments. Sectors such as infrastructure, healthcare, advanced manufacturing, and renewable energy are likely to see increased activity, driven by the emergence of scale assets and global macroeconomic stabilisation. This outlook reflects growing confidence in India’s economy and its position as a key player in Asia-Pacific PE-VC activity, with both domestic and global funds contributing to the influx of capital.