Private Equity: Impact on Indian Market
Private equity slowly entered the
business market in India through foreign investments and made a very
impressionable mark in the industry. The most important section of private
equity which caught the eye of the Indian market is the venture capital. Right
about when the startup culture was starting in India, the venture capitalists
entered the investment sector through foreign direct investment and made many
small budding businesses hugely successful in India. Some of the examples can
be seen in the leading Indian online stores and e-commerce businesses.
The growth capital has also done incredibly well in the Indian market
helping many businesses to flourish and expand their verticals in many fields.
The growth capital in India came as
a necessary tool for established businesses and organisations which were
looking for safer investments in their business so that with affordable returns
they could experiment in the other aspects and grow as a unit. Private equity
being a naturally safe investment method brought a great sigh of relief for
these companies and has contributed a lot to growing Indian economy as a whole.
Private equity funding has opened new doors of success and got a large section
of community driven towards dreaming of establishing huge business.
Private equityfunding was largely a european and western business method which started in
19th century. After having their ways through many busts and booms they finally
found their way to the developing companies where there was huge business potential
with limited capital resources. The largest firms in the world have started to
invest largely in these countries and has also inspired many other Indian forms
to rise to the occasions to contribute to business. The monopoly market in
India has been melancholic for long but now the Indian companies are in harmony
with the private equity sector.
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