Addressing a gathering of media persons, in a run up to its annual seminar scheduled for next week, AVCJ Group senior manager (Business Development) Trevor C F Chan said that approximately $411 million of fresh funds have been raised for investment in India in 2001. He, however, explained that the figure includes funds whose investment mandate could include geographies other than India as well, so a precise figure for India is difficult to determine. For the Asian region as a whole investible funds have gone up from $32.14 billion in 1997 to $85.5 billion in 2001 and are estimated to be in the region of $92.4 billion by the end of 2002.
We are optimistic about India as a whole, said Mr Chang. Agreeing to it, Walden International General Partner Dinesh N Vaswani said, Its important to realise the sectors like IT in India are growing in absolute terms compared to software firms in the US which are recording drops in their revenue. There are strong arguments to invest here, we only seem to be in the midst of a fear cycle as a result of which there is not much innovation.
Elaborating on the current state of the Indian IT sector, SIDBI Venture CEO Rakesh Rewari said that it was the need for cost saving by clients which was driving the sector, particularly the IT Enabled Services sector is playing a crucial role in this regard he said.
The AVCJ annual seminar in Mumbai next week will feature several international speakers from the venture capital and private equity sector, apart from experts in the field of biotechnology, privatisation, infrastructure, IT Enabled Services, investment in print media and cinema, among others.