India remains resilient in attracting investments despite a global decline in venture capital investments. According to Bain and Company, private equity (PE) and venture capital (VC) investors are exploring profitable prospects in the lending, healthcare, and manufacturing sectors in India.

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Speaking to CNBC-TV18, Ronika Sapra, Associate Partner at Bain & Company, said, “Within financial services, lending continues to see activity, whether that is NBFCs that are really expanding and capitalising on semi-urban, rural. In the healthcare space, both on the provider side, and the API, CDMOs, pharma side of things as well, that continues to be a space that continues to see activity, as well as sectors that will see some benefit from China plus one tailwind. So if you look at the manufacturing sectors as well, there's likely to be some activity there.”

Despite facing a decline in venture capital investments globally, India managed to remain resilient and attract investments in 2022. According to a report by Bain and Company, India's investment value dipped by 12 percent in 2022, when compared to the 2021 peak of almost $70 billion.

Sapra stated India continues to be a bright spot in the APAC region. She mentioned that there could be more caution in the short-term due to higher credit costs, a number of firms are well-capitalized and would adopt a wait-and-watch strategy.

“In the more immediate term, there could be sort of a little bit of more caution, just given credit costs are a little bit higher, given the macro sentiment. “

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