A Pragmatic Analysis of Private Equity Investment in India

Sachin

Abstract: Private Equity funds invest in start-ups or technical projects. Private equity firms provide financial and managerial assistance to their portfolios. In today?s era, India has become the hub of private equity investment; the value of the investment in India has increased from $120 million in 1996 to $ 77000 million in 2021, which helps to boost the Indian economy. Hence it becomes vital to study the Impact of Private Equity investment on Economic growth. GDP is used as Economic Growth Indicator.The current study is based on secondary data; the World Bank database is sourced for the collection of GDP data, and PE investment values arecollected from the SEBI website for 15 years, from 2006 to 2021. Econometric techniques ARDL model is used to process the data. The result of the study revealed the positive and significant impact of PE investment on GDP. That shows PE investment may play a significant role in boosting the Indian Economy. Hence it can be concluded that government should take the initiative and liberalise the policies to promote investment.

Keywords: Venture Capital, Private Equity, Start-ups, Econometrics