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Private equity investors say the Government must clarify regulations and taxation, implement GST and speed up clearance of big ticket projects to facilitate investment flow into the country.
Expressing confidence that doing business in India will improve under the new Modi-led Government, a chunk of PE investors who participated in the Bain PE Investors Survey 2014, has said the Centre will improve their ability to operate in sectors of interest.
The survey, conducted by Bain & Company Inc, also reveals that 90 per cent of the 29 PE investors who participated in the survey expect GDP growth to rise to 6 per cent or more by March 2016.
According to PE players, the major challenges were lack of clarity and uncertainty around regulation and taxation, policy paralysis and poor governance and high valuation expectations by promoters, says a report from Bain.
More upbeat now Overall, “the survey shows the PE investor community is more upbeat now about growth in PE deal value and volume in the coming months, amid the improving business climate,” says the report quoting Arpan Sheth, Head of Bain & Company’s India Private Equity Consulting Practice.
“However, it is clear that these heightened expectations will come to fruition only if we see valuations temper and, just as importantly, if the Government follows through with reform-oriented policymaking in areas such as taxation and reducing foreign investor restrictions.”
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