Private Equities and Venture Capitalists to Invest More Than $8.5 Billion in India

According to a report released in New Delhi, VCs and private equities are expected to invest more than $8.5 billion (Rs. 358 Billion) in the next 5 years. The report was released by consulting giant Deloitte and industry lobby Associated Chambers of Commerce and Industry of India (Assocham). The major thrust areas are going to be Biotechnology and life sciences, logistics, clean technology, film production and education. Until now, the investors invested mostly in the area of Information Technology. Now they are seeing the opportunities in the above areas.

The US-based Life Sciences Fund has recently invested approximately $20 million (Rs.842 million) in a Hyderabad-based pharmaceutical company, Assocham president Sajjan Jindal added. The report also says that VCs are also expected to invest over $2 billion (Rs.84.2 billion) in India’s maritime infrastructure and logistics sectors to tap the rising demand for exports and imports.

Clean Technology is another area that will get momentum in terms of VC funding. PEs and VCs would be able to jointly make an investment of $3.5 billion (Rs.147.4 billion) in clean technology areas in the next few years, said Jindal. Another area of growth will be Film Production and Education. They can expect $250 million (Rs.10.5 billion) in VC investments in this industry during the next five years. Additionally, a Global PE firm with 36 billion (Rs.1.5 trillion) in assets is planning to invest about $200 million (Rs.8.4 billion) in the area of education.

Source: Silicon India

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