Unveiling Best Practices for Competitive Edge: A Literature Review on Enhancing Private Equity Competitiveness in India

Abstract

The Indian private equity industry has grown rapidly in the past decade. India must follow best practices to compete globally and attract investors. This study examined the best practices in six areas with the help of around 170 past research papers: Economic Activity, Taxation & Legal Codes, Capital Market Depth, Investor Protection & Corporate Governance, Human and Social Environment, and Entrepreneurial Culture after reviewing over 170 relevant articles. Private equity consulting firms, Preqin, and Private Equity International provided data for the study. The paper seeks to pinpoint the research deficiencies in determining the effective strategies for Private Equity in a specific sector, sub-variable, or independent factors when the findings are unclear. This research covers best practices to boost India's private equity competitiveness globally. Most of the research papers confirm that any developing country such as India can attract private equity investments and become a global capital hub by improving the legal framework, simplifying tax regulations, developing capital markets, strengthening corporate governance, and implementing investor-friendly economic policies. However, certain steps and policy changes are required cohesively to achieve the results in the long term. The outcome of this research paper will set the ground for a more detailed study to execute the policy changes and adopt the best practices at the grassroots level.