Indian investors are optimistic about the global economy and the fundamental growth prospects of the Indian economy, says the annual Deloitte and India Venture Capital Association study.
According to the report, Indian investors remain more optimistic than their peer group about the global economy's prospects and Indian financial investors' confidence in the home economy ranks 6th among the 13 countries surveyed with a mean score of 3.42 (out of 5).
"India continues to be a most favored destination amongst the emerging economies for Private Equity and Venture Capital allocations by the Institutional Investors.
"Macros are a concern but Private Equity and Venture Capital takes a long-term view and a micro perspective on investments. India still offers great investment opportunities," IVCA President Mahendra Swarup said.
However, the report noted that Indian investors' confidence in the economy as against China is not getting appropriately translated into actual investment by either the domestic or the foreign investors.
As per the report, the Indian and US investors' levels of intent to invest in India is 3.72 and 2.8, respectively, while Chinese and US investors' levels of intent to invest in China stood at 3.63 and 3.05, respectively.
The domestic government's ability to enact supportive policies for VC/PE investment serves as a limiting factor amongst investors, it said.
Given the level of confidence that Indian VC/PE segment have in the economy and the intent to invest in Indian firms, the same enthusiasm has not been translated into enticing the investors, especially locally but also globally, it said.
A sector-wise analysis shows that the Technology sector, Mobility, Cloud and New Media/Social Networking segments attracted significant, albeit expected, enthusiasm from Indian investors, the report added.