The Indian growth story is zooming ahead! Know how

Owing to the Modi-led government’s consistent steps to improve business environment and remove growth obstacles, investor sentiments towards India is witnessing a sea change, which experts feel can take country’s economy on a new growth trajectory.

According to an Economic Times report, India Value Fund Advisors (IVFA), which is the country’s one of the largest domestic private-equity players, is fast approaching closure of its $700 million (Rs 4,380 crore) fifth fund by raising money from global investors.

London-based research firm Preqin told the ET that the fundraising by IVFA is of extreme importance as the entire PE industry in India could only raise $800 million across five funds last year.

Investors, who had earlier stopped investing in the Indian market because of the country’s staggering economy, are now more confident to pump in money. According to the ET report, the investors are also encouraged by the steps initiated by the BJP government to revive key sectors such as infrastructure and attract foreign investment along with the promise to follow non-adversarial tax policies.

Vishal Nevatia, IVFA's managing partner, told the ET, "Our investors are confident about deploying the entire corpus. This confident is essential given the fact that the fund returned around $150 million of capital in 2012 from its $750 million fourth fund due to lack of investment opportunities.”

Dhanpal Jhaveri, managing partner at Everstone Capital, told the ET, due to favourable macro economic, fiscal and political factors, India is gaining renewed interest as an investment option for private equity.
(Image: The Economic Times)