Bullish on India

MINHAZ MERCHANT IS THE BIOGRAPHER OF RAJIV GANDHI AND ADITYA BIRLA AND AUTHOR OF THE NEW CLASH OF CIVILIZATIONS RUPA, 2014). HE IS FOUNDER OF STERLING NEWSPAPERS, WHICH WAS ACQUIRED BY THE INDIAN EXPRESS GROUP

- Minhaz Merchant

DESPITE GRIM TALK of a funding winter’, venture capitalists VCs) remain bullish on India. The startup ecosystem has obviously slowed butthe numbers tell a nuanced story. According to Tracxn data, over 140 new Indian VCs were founded between 2020 and 2022. They have invested in more than 4,500 startup deals during this threeyear period. Ankur Mittal, a partner at Physis Capital, said while markets remain volatile, As long as domestic investors continue to have faith in the resilience of the Indian economy, this positive) EE irend appears to be accelerating.” Other indicators are positive as well. Sales of vehicles in October 2022 rose to 2.09 million units. Power consumption, a bellwether for economic activity, increased 13.31 per cent year-on-year in September 2022. Private equity PE) funds are as bullish as VCs on India’s growth.

Electric Vehicle EV) startups are meanwhile attracting global interest. In the first nine months of calendar 2022, a total of 26 EV deals valued at 904 million were signed. India’s EV ecosystem is still small with a paucity of charging stations retarding growth. But that is changing rapidly. The government has set a target of achieving by 2030 an EV share of 30 per cent for cars, 70 per cent for commercial vehicles and 80 per cent for two-wheelers. India’s largest carmaker, Maruti Suzuki, has raised capital expenditure in 2022-23 by 40 per cent to Rs 7,000 crore. A late starter in EVs and SUVs, Maruti is doubling down on both.