MICROCAPITAL BRIEF: Private Equity Investments in Small and Medium Enterprises (SMEs) in India Rise 70% to $664m

The Planning Commission of the government of India recently released a preliminary approach paper regarding its 12th five-year plan (2012-2017) [1]. One of the focuses of the plan is to promote equity investment in SMEs by constituting a working group devoted to the concept. During the first two months of 2011, the total level of private equity funding invested in Indian small and medium-sized enterprises (SMEs) reportedly rose by 70 percent to USD 664 million [2]. It has been observed that private equity funding is focused on high growth industries such as technology and renewable energy, as opposed to conservative industries such as healthcare, pharmaceuticals and agriculture. The Indian SME sector contributes an estimated 40 percent of India’s exports and employs approximately 60 million people.

By Amira Berrada, Research Associate

Sources and Resources:

[1] http://planningcommission.nic.in/plans/planrel/index.php?state=planbody.htm

[2] http://news.radio-electronics.co/markets/private-equity-funding-opportun…

MicroCapital.org article, March 1, 2012, “MICROCAPITAL BRIEF: Mobile Transactions International of Zambia Receives $3.2m in Equity Investment from Omidyar Network, ACCION” https://www.microcapital.org/microcapital-brief-mobile-transactions-international-of-zambia-receives-3-2m-equity-investment-from-omidyar-network-accion/

 

MicroCapital.org article, January 30, 2012, “MICROCAPITAL BRIEF: Oxfam International, Symbiotics Launch Small Enterprise Impact Investment Fund for Asia, Africa” https://www.microcapital.org/microcapital-brief-oxfam-international-symbiotics-launch-small-enterprise-impact-investment-fund-for-asia-africa/

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Amira joined MicroCapital while working at Export Development Canada (EDC) as a Credit Insurance Underwriter. Amira holds a Bachelor degree in International Business and Finance from Concordia University in Montreal. While completing her bachelor degree, Amira spent a semester in France and upon graduation, three months in India working with non-governmental agencies, political and spiritual groups for various socioeconomic initiatives such as the advancement of women. While travelling to different cities and rural areas in India, Amira was touched by the poverty she witnessed and was dedicated to finding a way to intertwine her business interests with her passion for development. She hopes this internship in microfinance will provide the framework to integrate an element of development into her professional career as well as positively contribute to the field of microfinance. Amira speaks English, French, and Spanish fluently and has conversational knowledge in Portuguese and Arabic. In her spare time, she enjoys reading, trying new restaurants such as molecular gastronomy, restaurants made out of ice and Nicaraguan meals wrapped in banana leaves. Most of all, she loves to travel with loved ones.