India’s private equity (PE) and venture capital (VC) landscape is witnessing a remarkable revival. Investments in the country have surged to a three-year high of $26 billion in the calendar year 2025, reflecting renewed global confidence in India’s economic trajectory, according to a latest report by Equirus Capital.

As per the report, strong agricultural output, robust monsoons, and a revival in consumer demand during the festive season are key factors that have created a fertile ground for capital deployment across sectors.

In the first nine months of calendar year 2025, PE and VC investments have already surpassed the total combined inflows of 2023 and 2024. Deal activity, too, has accelerated, with 1,363 transactions recorded from January to September 2025, compared to 1,170 deals in the whole of 2024, the report noted.

The numbers underscore the expanding deal pipeline and heightened investor enthusiasm in India’s markets.

“The increased deal value in 2025 is because the proportion of smaller deals under $10 million has dropped to 40% of the total, compared with 47% in 2024. Meanwhile, mid-size deals in the $10–25 million range have risen sharply, from 21% in 2024 to 31% in 2025 so far,” said Bhavesh Shah, Managing Director and Head – Investment Banking, Equirus Capital.

This shift towards larger, more strategic investments has lifted the average deal value to $36.6 million in 2025, up from $34.4 million in 2024. The trend signals that PE and VC investors are increasingly betting on scalable, high-potential opportunities rather than smaller, fragmented deals, the report highlighted.

IT, consumer staples drive sectoral momentum

India’s accelerating digital transformation has turned information technology (IT) and consumer staples into the top-performing sectors for private investors. The IT sector’s share in total PE/VC deal value climbed from 23% in 2024 to 35% in 2025, supported by growing demand for digital infrastructure, SaaS exports, and AI-driven enterprise solutions.

At the same time, consumer staples have emerged as a key investment theme, capturing 13% of total deal value in 2025—up sharply from 4% a year earlier—as investors capitalized on India’s consumption growth story, rural recovery, and festive spending momentum.

“In contrast, financials and healthcare witnessed a decline in their share of total investments in CY 2025. The contribution of financials fell from 18% in 2024 to 11% in 2025, while healthcare dropped from 19% to 7%,” said Shah.

Exit activity cools

Even as investment inflows strengthened, exit activity moderated in 2025. Total exit value slipped to a four-year low of $11 billion, compared with $20 billion in 2024, $17 billion in 2023, and $20 billion in 2022. Yet, the sustained dominance of block deals and secondary market sales—together accounting for 52–67% of all exits between 2023 and 2025—underscores the continued depth and liquidity of Indian capital markets.

“The strength of India’s deep and liquid stock markets provides investors with multiple exit options—ranging from IPOs and block deals to strategic and fund-to-fund sales. This diversity ensures efficient price discovery and reflects the maturity of India’s capital markets in enabling entrepreneurial ambition and the vision of a Viksit Bharat,” said Ajay Garg, Managing Director, Equirus Group.

In 2025, financials (28%), healthcare (22%), and consumer discretionary (18%) led exit activity, reaffirming investor preference for scalable, high-growth segments.

“India remains the focal point of the global PE/VC ecosystem, having facilitated over 13,000 deals and $275 billion in cumulative deal value over the past decade,” added Garg.

India emerges as global hub for private capital

Backed by strong macroeconomic fundamentals, resilient domestic consumption, and increasingly sophisticated capital markets, India continues to strengthen its position as the preferred destination for global investors seeking sustainable, long-term growth. With record deal activity, rising mid-sized transactions, and resilient exit channels, the country is steadily cementing its place as one of the world’s most vibrant private capital markets.