Dry powder, or the collective pile of investible capital available with private investors, in India is at about $40 billion. The estimate considers capital available with India-based private equity and venture capital funds, global and Asia-focused funds with an India allocation, and sovereign and pension funds, as well as large tech investors such as Naspers. Indian private equity fund managers and non-Indian fund managers with India-focused funds have $9-10 billion of dry powder that has to be deployed in India. This is a historical high. This large amount of dry powder has different implications for different types of PE funds. Domestic fund managers with large assets under management and co-investment pools can compete effectively for buyout deals with the Asian and Global Funds. It now requires a fundamental shift in how private equity funds will implement their business strategy and manage capital.

(Deal Street Asia)