Economic and Investment Overview – Q3, 2023India’s real GDP witnessed a growth of 7.8% for the quarter ending June 2023, the highest in comparison to the last three quarters. This growth is majorly driven by private sector consumption (arising from growth in urban demand). High-frequency indicators, such as the monthly GST collections and Purchasing Managers Index (PMI) in Manufacturing & Service Sector, shown resilience, indicating a strong outlook.
On the investment front, there is a dip of 68% from the previous quarter’s activity. However, this decline can be attributed to extended deal due diligence on ongoing deals. As of YTD-23, PE inflows stood at USD 3.7 bn, 10% lower than levels seen in the same period last year. Nonetheless, considering previous trends, a healthy fourth-quarter volume could help the annual PE inflow reach a level close to previous years’ annual average.
Q3 witnessed a robust fundraising activity. Approximately USD 420Mn was raised through a prominent REIT focused on financing the acquisition of two large commercial office assets. A strong YTD fundraising pipeline is expected to strengthen the capital infusion in future quarters.