Private equity investment in India slowed down during this year, with only $14.9 billion of investments secured with 217 deals during the third quarter of the year. It’s a dip from 2024’s $26.3 billion, aaccording to a KPMG report, cited by ANI.This has primarily been due to global uncertainties including US tariff policies and geopolitical tensions, making it possibly the weakest year since 2019.
“Should current trends continue, 2025 could be the slowest year for PE investment since 2019 and the slowest for deal volume since 2020,” stated the KPMG report.Despite the decline, investor interest in India is strong, backed by solid economic factors and market performance. “Global PE investors have put a lot of work into building their market presence in India. Many have recognised the importance of having a local team, in a local office, with the ability to build local relationships — and have set up shop directly in the country in order to make investments and provide active support to their portfolio companies,” the report further stated.The PE market is maturing, with more billion-dollar funds becoming common. Some key sectors that are attracting notable investment include technology (shifting from traditional IT to SaaS models, AI-enabled manufacturing), healthcare, life sciences, and financial services. The current slowdown is expected to continue until global trade policies become clearer. However, KPMG report added that competition for good investments might affect valuations once market conditions improve.Financial services investments cover various areas like banking, insurance, wealth management, and fintech. The market has evolved, showing increased institutional participation through larger fund sizes.
