25 January , 2023 Fdiindia
Will the Government go the Extra Mile for PE/VC -Budget 2023-24
Over the past decade, India has moved expeditiously on the path of capitalism. It would be correct to say that amidst the global recessionary trends and interest rates on the rise, India is still in a better spot currently as compared to its peers because of the capitalist measures taken by the government. India’s highest annual foreign direct investment (FDI) inflow of USD 84.84 billion in 2021-2022 was registered, with the substantial part coming from investments of foreign PE/VC investors.
On the domestic front, almost 1000 AIFs have been launched as of now, contributing to the domestic pool of investment.
The current Government has not been insensitive to the needs of Private Equity (PE)/Venture Capital(VC) industry. Thanks to the Active listening and setting up of a committee of experts for PE/VC in the last year’s budget.
All the focus in this budget will be on the government’s reaction to the recommendations provided by the committee.
The expectations of the PE/VC industry are modest in case, one sees the measures which are already being implemented by developed capitalist economies.
The main takeaway from this is that the government came to the realization that “What got India here, won’t get it there”. It will require bold steps to be taken in order to create new opportunities and attracts investment.
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