TLDR:
- Private equity and venture capital (PE-VC) investments in India totaled approximately $39 billion in 2023, aligning with pre-COVID-19 levels.
- The manufacturing sector attracted roughly $2 billion in investments and the EV sector saw substantial investments with an anticipated 40% penetration rate by 2030.
Private equity and venture capital (PE-VC) investments in India reached $39 billion in 2023 according to the annual ‘India Private Equity Report 2024’ by Bain & Company and the Indian Venture and Alternate Capital Association (IVCA). The investment distribution in 2023 demonstrated a shift towards traditional sectors like manufacturing, healthcare, and energy, accounting for about 75% of total investments compared to 60% in 2022. The manufacturing sector in India saw growth with about $2 billion in investments, driven by supply chain diversification and government incentives. The EV sector also experienced substantial investments with an expected 40% penetration rate by 2030, particularly among OEMs like Ola Electric, Ather Energy, Mahindra EV, and TI Clean Mobility. The PE-VC dealmaking landscape in India is expected to remain strong in 2024, focusing on traditional sectors like advanced manufacturing and the EV market. The packaging sector is projected to grow at a CAGR of 10% between 2023-27, and electronics production in India is forecasted to expand at a 25% CAGR. Global supply chain diversification is expected to benefit Indian manufacturers, especially in export-oriented sectors like electronics, pharmaceuticals, and chemicals.
