Year 2010 seems to be good PE and VC
The private equity (PE) and venture capital(VE)in India are expected to touch $17 billion this year.
Both PE and VC are expected to grow by 35% to 50% by the year 2012. The PE industry there would be some surge in buyouts by 20% according to Bain &company. The use of leverage has not affected the growth of both PE and VC.
Even under strict government regulations on PE and VE the investors seem to have a growth effectively.
Most of the PE are passive minority holdings rather than active due to the limitations. A hospitable environment has been created by India to PE says CII in a report. A potential fund of $100 billion within three years will be funded by the private equity.
A critical mass has been gained by both PE and VC during the period of five years(2004-2009). The critical mass is gained because of the 1,400 Indian business and a investment of $50 billion. The future will decide whether Indian PE will survive up to the expectations of investors. The PE investors must be able to position themselves as givers ih addition to funding.
Major foreign investments into growing companies would go a long way in strengthening the economic development of the country with over 1.1 billion population.