Domestic PE investments rising, may set new benchmark

India has emerged as an attractive destination for both foreign and domestic investors largely due to improving regulatory framework and private equity (PE) investments this year may set a new benchmark, says a report.

Domestic PE investment is rising and stood at $3.41 billion last year and crossed the peak of $3.3 billion set in 2007, it said, adding that this year may set new benchmark.

"The recent state election results have only reaffirmed that the central government will keep working on improving and introducing newer policies that are aimed at growth of different sectors, including the important real estate sector," said Shobhit Agarwal Managing Director – Capital Markets and International Director JLL India.

While domestic PE investments in 2015 stood at $1.77 billion, it doubled in 2016 to $3.4 billion. Meanwhile, foreign PE investments, which stood at $1.54 billion in 2015 increased to $1.85 billion in last year.

"Looking at this data, it can be said that that equity investment is on a return journey to India and rising consistently in the last three years," Agarwal said. Besides, local knowledge also makes them more confident investors than their foreign counterparts that do not necessarily get to witness all the positive changes taking place in India, he added.
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