India Private Equity Mid-Market Monitor: 2025 - ‘Weathering global storms’
Date
5 min read
India remains a resilient investment hub despite macroeconomic and geopolitical volatility - its growing economy and pro-growth policy environment continue to attract global capital.
After a historic IPO boom in 2024 (as covered in our previous report), the Indian market is currently undergoing a reset. As public markets moderate, strategic sales and secondary transactions are gaining momentum.
DC Advisory India's senior bankers explore the key drivers behind the country's public and private market trends and the implications for investors and founders, covering:
1. India’s economic outlook
2. Public market trends
3. Exit activity
4. Private market trends
5. Outlook for the next 12 months
The story so far...
India’s economic momentum continues to outpace its global peers [1], with GDP growth projected at 6.5% in FY 2025 to 2026 [2]. This strength is driven by robust domestic consumption, increased government spending, industrial expansion, and the structural advantages of the ‘China + 1’ strategy [3] - all of which reinforce India's position as a compelling, long-term growth story.
Indian equity markets have seen significant volatility, marked by peaks, followed by corrections, a quick rebound, and back to all-time highs - all within the last 18 months
After reaching an all-time high in September 2024 - driven by strong corporate earnings, increased domestic liquidity, and optimism following the general elections - Indian equity markets fell over 16% in the next five months, marking the longest losing streak the Indian markets have witnessed in over two decades, and wiping out over $1 trillion in market cap [4]. However, in a testament to India’s resilience, the market has since bounced back, reaching a near all-time high in June. This recovery is driven by strong GDP growth, healthy corporate earnings growth, and a growing sense that India is potentially a net beneficiary of the Trump tariffs [5]. Given the dominance of domestic liquidity flows, India has become more decoupled from the global market, with local economic and earnings performance increasingly being the key drivers of positive market sentiment. In the face of volatility, the Indian market is finding its footing, proving its resilience, and emerging stronger and more mature.
Download the full report to find out more:
Featured in the Economic Times India >
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References
Predicting future activity is an art and not a science and this analysis is not scientific. It is informed judgement – much like the best M&A advice.
This publication has been prepared solely for information purposes and is not intended to function as a “research report.” In particular, this means that it is not intended, nor does it contain sufficient information, to make a recommendation as to the advisability of investment in, or the value of, any security.
Additionally, this publication does not constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of any offer to buy, or any recommendation with respect to, any securities. You should not base any investment decision on this publication; any investment involves risks, including the risk of loss, and you should not invest without speaking to a financial advisor.
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[1] India's economy outperforms peers as it surges 7.4% in January-March | Reuters
[2] Press Release: Press Information Bureau[3] Benefit for India: How Indian ports will gain from China+1 strategy - Moody’s explains - Times of India
[4] https://www.reuters.com/world/india/indian-stocks-worst-run-29-years-wiping-1-trillion-wealth-may-yet-have-legs-2025-02-28/
[5] https://www.ndtv.com/world-news/us-tariffs-donald-trump-trump-tariffs-the-surprise-upside-for-india-8098423
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