India: Private Equity
Opportunities in a
Rising Economy
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Foreword
Launching our “Asia for Asia-Asia for the World” thought leadership series is our report on India, a country that we believe will offer opportunities for portfolio diversification and value creation to investors globally in the coming months and years.
Executive Summary
Asia’s New Growth Engine
India’s performance as one of the world’s fastest-growing economies in 2022 reveals a compelling picture of Asia’s new growth powerhouse.¹ With the current dynamics in developed markets, it is our view that it is increasingly important for institutional portfolios to be investing in India.
We believe investors can avail of two long-term investment opportunity sets:
1. India for India: Focused on consumer, healthcare, and financial services sectors, which in our view stand ready to capitalize on a massive and fast-growing domestic market and an increasingly favorable consumption pyramid.
2. India for the World: Focused on sectors poised to cater to global demand, including the large and highly regarded technology services industry, a manufacturing base increasingly crucial to a re-orienting global supply chain, and a fast-growing pharmaceutical industry.
India for India: Opportunities in Consumer Retail, Healthcare and Financial Services
As the country rises up the wealth ladder, we believe it will likely lead to major growth opportunities in the consumer, healthcare and financial services sectors.
India for the World: Opportunities in Tech, Manufacturing and Pharmaceuticals
We believe the traditional export bastions of information technology (IT) services and pharmaceuticals will continue to benefit while domestic production ramps up, thanks to various government initiatives and the diversification of global supply chains.²
Keys to Successful Investing in India
The next few years could be pivotal for private equity in India as investors recalibrate their pan-Asia strategies to sharpen their focus on opportunities in the country, particularly as appetite for majority stakes has increased.
¹ “Indian Economy Continues to Show Resilience Amid Global Uncertainties,” The World Bank Press Release, April 4, 2023.
² “The New India | Asia Pacific: Why This Is India's Decade,” Morgan Stanley Research Report, October 31, 2022.
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Carlyle - Reimagining Asia: India Edition
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