Inc 42 recently summarized, in excellent fashion, the steady uptick in Investment activity in 2017.
While some of these numbers can get skewed by the sheer quantum of the Flipkart investment and also by the fact that 2016 was indeed a rough year, there is little doubt that the ecosystem is enjoying a fresh dose of optimism. The reasons are largely political – and amazingly this can be read in a good way – but some positive signals from the annual Union Budget, further clarifications from SEBI on treatment of capital gains on preferred equity, the setting up of an Nse ITP, and the ruling party (BJP) win a crucial state election have positively contributed to the sentiment.
The last of these deserves special mention: Uttar Pradesh (UP) is the largest and by far, the most political important state in India. A UP election win often paves the way for a strong showing in the national elections – and thereby is expected to significantly strengthen PM Modi in his re-election bid. His party’s victory, in spite of tough (in the short term) decisions like demonetization is likely to embolden him to take bold economic decisions that are expected to help the economy in numerous positive ways.
Looks like some of that VC dry powder is finally getting deployed!