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Laxman Pai, Opalesque Asia:

India recorded a 53.6% year-over-year drop in private equity-backed investments to $13.71 billion in 2023, outpacing the decline in deal value in China said a study.

According to S&P Global Market Intelligence data, transaction value in China, the region's largest economy, stood at $68.81 billion in 2023, down 9.6% from the prior year.

Meanwhile, the global private equity and venture capital investment in mainland China was $68.80 billion in 2023, the lowest in five years, while the number of deals decreased for the second consecutive year, The report quoted Victoria Chernykh, assistant vice president for research insights at Preqin saying that the drop in private equity investments into China and India in 2023 mirrored the broader trend of private equity entries worldwide, dragged by the rapid and big interest rate hikes in 2022 and 2023 to fight inflation.

The drop in investments was also attributed to the prolonged economic uncertainty in China, as well as the intensified geopolitical tensions in the region.

In 2023, India recorded $11.79 billion in private equity-backed investments from outside the country, accounting for almost 86% of the total, according to Market Intelligence data. In contrast, private equity investments in China were mainly from local sources, with only $15.61 billion, or around 22.7% of the total, being externally sourced.

In the fourth quarter of 2023, private equity-backed entries in India dropped t......................

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