This article is an excerpt from a discussion that took place at the inaugural Buy-Side Forum Mumbai 2023 event.
Investing in India has witnessed a remarkable transformation over the years, offering individuals and institutions a diverse range of investment alternatives. The “Make in India” initiative that launched in 2014 is one example, helping spur a doubling of foreign direct investment to $83 billion by 2022.
By keeping inflation under control, making supply chain reforms and restructuring tax collection, India is achieving growth and opening up investment opportunities for local and foreign private equity investors.
The rise of equity investments
Equity investments have long been a favored choice for investors seeking long-term growth. The Indian equity market has witnessed significant advancements, from traditional stock trading to the emergence of online trading platforms.
Regulatory changes have played a role in democratizing equity investing in India. The introduction of the Securities and Exchange Board of India in 1992 brought about greater transparency and investor protection, spurring investor participation.
Expansion of hybrid capital
Hybrid capital instruments such as preference shares, convertible bonds and mezzanine financing, have gained popularity in recent years.