MUMBAI: Private equity (PE) activity continues to face headwinds with overall deals falling to a low $14.9 billion during the third quarter of the calendar year 2025, across 217 deals—a steep decline from $26.3 billion across 289 deals during the same quarter, weighed down largely by the continuing geopolitical tension and trade uncertainties, particularly around US tariffs. This will see the country on track to be the slowest year since 2019 in value and since 2020 in volume, KPMG said in a report released on Tuesday.
As against this, the global tally during this period is a whopping $537.1 billion, taking the total in the first nine months of this year to $1.5 trillion, according to the report, which also says that India still remains a highly attractive destination for global investors due to the strong macroeconomic fundamentals, a large and young population, and rising domestic consumption, and the current slowdown is temporary as investor sentiment towards the country remains optimistic, with many global PEs continuing to deepen their presence here, often acting as business builders rather than passive investors.
“The maturing ecosystem is reflected in the growing size of India-focused funds and the increasing breadth of sectors attracting capital—from technology and healthcare to financial services and specialized manufacturing. The strength of the country’s capital markets has also made it a favorable environment for IPO exits, further enhancing its appeal,” the report said, adding domestic institutional investors are showing strong appetite for PE-backed IPOs.
Looking ahead, Nitish Poddar, head of private equity at KPMG India, said the current dip is expected to be short-lived. As geopolitical uncertainties stabilise, investor confidence is likely to rebound, unlocking greater deal flow and capital deployment. With a maturing ecosystem, rising fund sizes, and a broadening sectoral base, the country is well-positioned to attract sustained PE interest.
