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Q.3 What are the factors driving the surge of private equity funding in India? What are the advantages and issues with such a rapid inflow of funds in the Indian economy? (10 Marks)

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Staff @CD

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Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/indian-economy-market-investors-7570709/
  • In the intro, mention the flow of $52 billion of PE funding in India over the last one year.
  • In the body, mention the factors such as better physical infrastructure, innovation in banking and digital economy, a large number of software professionals, maturing industries such as pharma and global factors like low-interest rates in the developed economies etc. While such flow of capital acts as a booster there are several concerns with it such as allocation inefficiencies and companies’ valuation rising manifold within months.
  • Conclude by mentioning that for now, this flow of funds is a welcome booster for the economy as it recovers from the scars of the pandemic-driven lockdowns.

Comments

10 responses to “Q.3 What are the factors driving the surge of private equity funding in India? What are the advantages and issues with such a rapid inflow of funds in the Indian economy? (10 Marks)”

  1. Afshan Parween Avatar
    Afshan Parween

    Please check my answer and give a feedback. I’m just a beginner..

    1. Staff @CD Avatar
      Staff @CD

      Afshan,
      Good answer. The demnd of the question is met. However try to mention about various stakeholders affected by the pandemic and various situations in which EI can help. Do mention examples from real life scenario. Overall a decent answer.

      Keep writing.

  2. Siddharth CHATURVEDI Avatar
    Siddharth CHATURVEDI

    Razor ID: #0000466569

    1. Staff @CD Avatar
      Staff @CD

      Siddharth,
      Good attempt. The demand of the question is met. All the major points have been covered. Good co-relation with the contemporary economic situation. Overall a good answer.

      Keep writing.

  3. ARPITA Avatar
    ARPITA

    Razor Payment Id
    #0000466732

    1. ARPITA Avatar
      ARPITA

      Staff@CD

    2. Staff @CD Avatar
      Staff @CD

      Arpita,
      Good answer. Good attempt. All the major points have been covered. The demand of the question is met. Good co-relation with the contemporary economic situation. Overall a good answer.

      Keep writing.

  4. Afshan Parween Avatar
    Afshan Parween

    Q no. 3 … Wrote today…

  5. Afshan Parween Avatar
    Afshan Parween

    Wrote Qno. 3 today….

    1. Staff @CD Avatar
      Staff @CD

      Afshan,
      Good answer. All the major points have been covered. The demand of the question is met. Good co-relation with the contemporary economic situation. Overall a good answer.

      Keep writing.

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