India remains the preferred choice for global private equity venture capital and the government has done a great job in enabling a conducive environment for private equity and venture capital investment, believed Sanjay Nayar, Senior Advisor, KKR India.
“In the last ten years, the private equity venture capital has brought in above USD 250 billion and India is right up there as the leading destination for foreign capital — and the trend should hold for our own (domestic) capital too,” said Nayar at IVCA‘s Annual Conclave.
According to Nayar, the private sector today has all the makings of the stimuli they need to help propel the country’s economic growth. The kind of incentives being given would further encourage private sector investment, he felt.
“The ease of doing business in India has certainly improved. You have a tremendous PLI scheme, you had the corporate tax rate cut. And the finance minister has done a good job to make sure the Capex expenditure reaches a totally new benchmark, especially in infrastructure,” Nayar said.
The Ex-Chairman of the Indian Venture and Alternate Capital Association(IVCA) is of the view that every budget has a few trade-offs. The Finance minister, this time, brought the fiscal deficit down – but not in a dramatic rush – which was a good decision, he added.
Pitching for enhancing the domestic capital investment space, Nayar said that Aatmanirbhar capital is very important for Aatmanirbhar India ( self reliant India). Thus self-sufficiency in this domain should remain a key focus of all stakeholders, he added.
“Venture capital represents a very valuable part of the capital in the country today. As a country, our public debt to GDP is 90%. and thus we are short on supply at a macro level. This sector is very critical right now, because through this you provide the most valuable form of capital in a country, which is generally deficit in terms of saving- investment gaps,” he added.
Apply for ETRise Top MSMEs Ranking. Register now