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India grabs global attention for investments

India Grabs Global Attention For Investments
Global attention for investments

Yoga, Meditation, and Chicken Tikka Masala, which were things only known to India, have now gained global recognition for all the right reasons, thanks to the invention of the internet. One upside to the Internet is that it has allowed people worldwide to understand and appreciate different cultures. It is refreshing to see India’s evolving global outlook.

 | India grabs global attention for investments

As we become an inclusive and progressive society, countries that were overlooked are slowly getting much-needed time under the sun. The ascension of an Indian-descent woman to the vice presidency of the US is a much-needed representation and a significant triumph for India, wouldn't you agree?

Don’t underestimate India 

India is the fastest-growing developing country. Surpassing the expectations of analysts, India’s Gross Domestic Product saw a robust annual growth of 8.4% in the third quarter (October to December). India has also caught the attention of global investors. Did you know that India now accounts for more than 7% of the iPhone's global production and is pouring trillions of dollars into upgrading its infrastructure? A few years ago, this would have seemed unimaginable for India, as China was the manufacturing hub of the world and India was only a close second.  

India has witnessed a twofold increase in global funds allocation from several international funds, with their portfolios now accounting for 15% of Indian companies. These companies are from sectors such as healthcare, financial services, education, real estate, and technology. 

The software services industry has gained significant attention from global private equity investors, as more and more global companies are acquiring Indian software firms.

The number of Private Equity funds holding majority stakes in Indian IT companies has doubled between 2019 and 2022 to more than 50, as per a report from Avendus Capital. 

According to recent data from GrowthPal, a Mergers and Acquisitions deal sourcing platform, inbound deals from global investors rose 35% in 2023, compared to 25% last year. 

Only 10 Private Equity(PE)  funds held majority investments in the IT services sector between 2008 and 2013. This number has increased to over 50 funds with a majority stake in IT services. The total value held by PE firms in the sector has quadrupled, going from $13 billion to $55 billion today. 


Why India is attracting global attention for investments?

  •  Indian IT firms exhibit strong growth potential, not to forget that India produces thrice as many engineering graduates as the US each year. 

  • Indians show more intent on upskilling in AI. A record 83% of Indian professionals intended to upskill in 2023. 

  • For the first time in the last five years, Indian IT companies are outperforming their global counterparts, powered by resilient performance. 

  • India has a huge population advantage, with a large, English-speaking, hardworking, and ambitious workforce. 

  • In a world shaken by geopolitical flare-ups, wars, inflation, and pandemics, India has managed the pressure relatively better, with less disruption to its stability. 

  • Today, 59% of Indian IT professionals at large organizations report that they have actively deployed AI, while 27% are actively exploring using the technology (IBM survey). Because of this, India’s productivity is expected to grow by 0.7% points over the next year. 

  • Sustainable development and climate action are also gathering pace, and China and India can also add climate incentives in the coming quarters to boost sustainable development. 

India is set to play an important role in the global economy and could emerge as the next global manufacturing hub, as China faces economic tensions and rifts with the Western world. Active Bond funds have put 50 cents to work in India for every dollar they pulled from China, according to a report from TOI. The next few decades are crucial for India from an economic standpoint and could bring the nation closer to becoming a golden bird again. 

(Author: Karishma is a content writer at TechdoQuest. She gives fresh and youthful perspectives on whatever she writes about.)

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