IndusView Advisors, an Indian consultant that advises multinationals on cross-border deals, says that $5 billion (€2.5 billion) has been invested into property and infrastructure.
In the report, the firm says 32 private equity real estate deals worth $2.6 billion have been completed since records began, while 20 infrastructure transactions worth $2.4 billion have been done.
The two booming sectors have helped attract a total of $10 billion from private equity firms keen to cash in on the country’s booming economy. The high levels have helped to propel India to second in the chart of top investment locations in India. It beats China, which has attracted $8.3 billion. Only Japan has attracted more, says the report.
The figures emerge at a time when there seems to be little let-up of investment capital flowing into the country. Last month, JP Morgan committed $25 million to an IT park development in Navi Mumbai through its $360 million India-focused investment vehicle. In August , the Blackstone Group announced it was investing $150 million in Nagarjuna Construction Company, the third largest construction company in India. Singapore’s Government affiliated investment Temasek Holdings, Warburg Pincus and the Carlyle Group have also invested in the real estate and infrastructure sectors.
According to Indian government estimates, the two sectors have the capacity to absorb as much as $300 billion over the next five years.