Private equity (PE) and venture capital(VC) industry has become a key anchor for the Indian economy with companies funded by them emerging as most significant job creators and also major contributors to the country's tax revenue, industry body IVCA said on Monday.
At the 9th annual conclave of the Indian Private Equity and Venture Capital Association (IVCA) here, a report released by IVCA and Zinnov also showed that 70 per cent of the jobs were created by VC funded companies in India.
On the first day of the two-day event, IVCA Chairman Padmanabh Sinha said, "PE and VC clearly have become anchors of the economy and playing a structural role in economy...it provides the right momentum to the Indian economy as investee companies create new jobs as well as give through increased tax revenues."
At the event, KKR India CEO Sanjay Nayar said, "Corporate governance is vital for the industry...Some of the government's reforms may seem painful in the short-term but provide a gain in the long-term."
He, however, said, "Exits in India are not easy as we have a narrow capital market."
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