The Indian economy has become important in the global context due to its nature
and size. It has the potential to realize sustained high growth rates. India is among
the more attractive investment destinations globally, driven by a combination of
strong potential, an improving regulatory environment and favorable demographics.
It now has a sizable middle class, and the population below the poverty line is also
decreasing.
India, the second most populated country in the world with more than
1.24 billion people (Census, 2011), has emerged as one of the fastest growing
economies in the recent years. With the projected average yearly compounded
growth rate of 9%, India's GDP is likely to be US$ 1.4 tn by 2017 and US$ 2.8 tn by
2027 (Sharma and Tripathi, 2015). India is doing well in IT/ITES industry; it is still a
low-cost developer and service provider.1 As India continues on its rapid growth
path, several sectors of the economy such as telecom, FMCG, infrastructure and education are growing rapidly and offer significant opportunities for venture capital
(IVCA Bain India Private Equity Report, 2013). It also needs to be noted that with
other areas of the business and industry getting more and more technologyoriented,
there will be requirement of adequate capital and support which can be
provided by the venture capitalist.
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