TLDR:
- Private equity and venture capital investments in India softened to $39 billion in 2023, returning to pre-COVID-19 levels.
- Traditional sectors like manufacturing, healthcare, and energy showed resilience, with 75% of investments in 2023.
Mirroring the global trend, Indian private equity and venture capital (PE-VC) investment softened to $39 billion in 2023, according to a report by Bain & Company. The report highlighted that traditional sectors like manufacturing, healthcare, and energy showed resilience, capturing 75% of investments in 2023, compared to 60% in 2022. The manufacturing sector in India emerged as an attractive option for investors, with $2 billion in investments and a 20% growth rate over the last two years.
The report also pointed out the growth in the electric vehicle (EV) sector, with EV penetration in India expected to reach 40% by 2030. Original equipment manufacturers (OEMs) drove over 70% of deal value and large investments in vehicle segments, such as Ola Electric, Ather Energy, Mahindra EV, and TI Clean Mobility. This growth trajectory is attributed to the increasing demand for EVs in India and the government’s push towards a sustainable future.
