PE, VC inflows up 9% in October as macro signals boost investor sentiment

India's private equity, venture capital investments touched $5.3 billion in Oct 2025, rising nine per cent, as resilient sectors, policy cues and a steady macro backdrop supported investor confidence

Private equity (PE) and venture capital (VC) investments in India reached $5.3 billion, up nine per cent, in October 2025, both on a year-on-year (Y-o-Y) and month-on-month (M-o-M) basis. According to the EY–Indian Venture and Alternate Capital Association monthly round-up, pure-play PE/VC investments in October 2025 at $5 billion (the highest in the past 13 months) increased 81 per cent Y-o-Y while the real estate and infrastructure asset class declined by 86 per cent to $291 million in the same period. 

The report noted that the PE/VC landscape in India is set for an active phase, shaped by a series of key macro and micro developments. Q2 earnings highlighted a mixed corporate outlook: banking, IT and FMCG remained resilient while commodities and manufacturing faced margin and demand pressures. 

The Bihar election results and potential shifts in US trade policies under the Trump administration could positively impact capital flows and investor sentiment. Domestically, Goods and Services Tax (GST) collections remain robust and the decline in the October Consumer Price Index (CPI) provides the Reserve Bank of India with elbow room for potential rate cuts — an outcome that could accelerate capex spending and consumption-led growth. 

With capital market valuations remaining buoyant and the appetite for IPOs strong, valuations continue to challenge private deal-making. A favourable US–India free trade agreement (FTA) could potentially provide the trigger for a sentiment change.