Investing in India: What Financial Investors Must Know | Doing Business in India | Episode 25

India is the fastest-growing major economy in the world with a GDP growth consistently above 6 to 7%, private equity and venture capital investments reaching USD 60.7 billion in 2025, and the Nifty 50 Index delivering annualised returns of approximately 11% in dollar terms over a 10-year horizon. Landmark IPOs such as Zomato, Nykaa and Policybazaar have generated strong returns for early investors. The exit environment has never been more active. If you are a financial investor and not already in India, this episode asks, and answers, why that may be worth reconsidering.

In this episode of the Veyrah Law series, Ajay Joseph (Partner at Veyrah Law) addresses financial investors specifically: private equity, venture capital, family offices and institutional players deploying capital into unlisted Indian businesses without running them directly. The discussion covers the four core risks: contract enforcement limitations; RBI exit pricing constraints; tax uncertainty under GAAR and treaty benefit rules; and currency depreciation. It then sets out the practical playbook: why diligence is your primary protection, how to govern operationally rather than contractually, why observer status beats a board seat, why western term sheet concepts do not always translate into Indian enforcement reality, and how to structure with genuine substance while pricing in currency risk from day one.