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Mirroring the global trend, Indian private equity and venture capital (PE-VC) investment softened to $39 billion in 2023, returning to pre-COVID-19 activity levels, reported Bain & Company on Monday.

Traditional sectors, including manufacturing, healthcare, energy have shown resilience and gained share, with some 75% of investments in 2023, compared to 60% in 2022, it said.

The manufacturing sector in India emerged as an attractive bet for investors with investments of $2 billion growing by 20% CAGR over the last two years (2021–23), driven by supply-chain diversification, government incentives, and numerous scale assets coming to market, according to Bain & Company’s annual India Private Equity Report 2024 prepared in collaboration with Indian Venture and Alternate Capital Association (IVCA).

With EV penetration in India expected to reach 40% by 2030, the past year saw OEMs drive over 70% of deal value and large investments (more than $100 million) across vehicle segments, such as Ola Electric, Ather Energy, Mahindra EV, TI Clean Mobility, as per the report.