Role of various PE investments in India.

Investment business is one of the most profitable sources of good income in today's world. There have been several kind of investments which  have brought fair amount of success to many industries. Stock market investments and mutual funds are some of the examples which have proved themselves profitable to many individuals. But these are the types of investments which work on ground levels.  Private equity has played a major role in business investments  and a major capital flows in several industries has been because of it.  Private equity evolved in 19th century in the European corridors and since then it has seen many booms and busts.. Eventually, the private equity business has achieved stability and entered into the markets of all developing nations. 

An important sector through which  private equity has influenced the economy of India is  the real estate funds. Real estate is one of the fastest growing business sector in India. Due to  the high population and growing per capita income of the country there is a huge demand of housing and industrial property. The real estate developers have been receiving substantial aid from the private equity funding companies and through foreign direct  investment. This is one of  the main reasons that  real estate has flourished a lot in the last few years.




VEnture capital and growthcapital in India have also contributed significantly to the technical and manufacturing industries. Many of the companies which  were in the need of the seed fund at the time they were new to the business have received help from venture capitalists to establish their company, develop the product and then to run and market it. The same case has been with the growth capital where many of the companies which have been looking to expand into the various verticals of their business needed some fund as they would not like to use the cash flow from the original company to be risked. Growth capitalists have seen potential in the business schemes of these companies and helpped them grow with the help of required investment and guidance. 

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