Private equity investments in India hit a two-year high in calendar year 2024 at about $15 billion, up 50 per cent over levels of $10 billion in previous year, latest data from LSEG Deals Intelligence showed.

However, the number of deals saw a 3.1 per cent decline to 1,281 (1,322).

Commenting on the performance, Elaine Tan, Senior Manager, LSEG Deals Intelligence, said, “Private equity investments growth was driven by sectors such as healthcare and pharmaceuticals, consumer-related industries, and technology.”

Middle-class, start-up wave

India’s expanding middle-class population, robust start-up ecosystem and a strong IPO market provided ample opportunities for investors, she added.

India remains one of the top markets in the Asia Pacific for financial sponsor activity, accounting for at least 28 per cent of the region’s total equity investments during this period, up from a 15 per cent market share the previous year.

However, private equity funds raised in India fell by 29 per cent year-on-year in 2024 to $4.3 billion. Despite this decline, the total PE funds raised over the last three years reached approximately $23 billion, earmarked for deployment in India.

“Favourable government initiatives, anticipated global monetary easing, diverse sector opportunities, and a rising interest in integrating ESG into growth strategies are some of the key factors expected to drive private equity activity in India in 2025,” Tan added.