PE players see better investment climate

NEW DELHI: In view of sound economic growth and rising domestic demand, private equity players say that India now has a better investment scenario compared to 2007, according to a survey. Global consultancy Protiviti's survey also found that sectors such as energy and infrastructure are likely to see higher allocation from PE funds in short to medium term.

"Strong self consumption driven by the great Indian middle class and consistent economic growth ranked higher in respondent's minds as reason for a more favourable investment environment now as compared to 2007," the report said. The findings are based on a survey of senior executives at more than 25 PE firms.

The respondents also said that unreasonable valuation expectation was among the main reasons for not completing a proposed investment. Further, the report noted that almost "a third of the respondents believed India shall perform better than both China and Brazil". Protiviti, one of the largest independent business and risk consulting firm, operates in India through its arm Protiviti Consulting Pvt Ltd.