India's Investment Landscape: An Upward Trajectory Amid Caution

Private equity and venture capital investments targeting India experienced a decline, with a 19% year-on-year reduction to USD 26.4 billion in the first half of 2025, according to a report by industry body IVCA and consultancy EY released Tuesday.

While the total investment amount surpassed the USD 23.8 billion recorded in the latter half of 2024, the number of deals slipped to 593 from 704 in the previous year. Contributing factors included strong GST collections, a rate cut by the Reserve Bank of India, and an active IPO pipeline, fostering a cautiously optimistic outlook despite concerns over earnings growth and prolonged US-India FTA discussions.

The report suggested a potential pick-up in investment activity later in 2025, driven by improved corporate earnings and the conclusion of trade negotiations. Additional findings highlighted USD 18.3 billion in investments excluding real estate and infrastructure, and marked a USD 1.5 billion deal involving New Mountain Capital and Access Healthcare Services as notable.

(With inputs from agencies.)