4 min read.Updated: 19 Aug 2021, 06:25 AM ISTManish Sabharwal,U.K. Sinha
Private equity has made Indian capitalism more meritocratic but we must not go the US way in a few key areas
The contempt for ‘Start-up India’ a few years ago was rooted in theoretical economic models incapable of predicting that India, a $2,500-per-capita-income country, will have 5 million people writing software, 3 billion monthly real-time digital payments, $20 billion of global private equity capital raised this year, and $3 trillion in public market capitalization. This migration represents wonderful openness by Indian regulators and investors to an American innovation: valuing companies based on their addressable market, top-line growth and future bottom-line. The innovation of private equity has made Indian capitalism more meritocratic, but we make a case for using this opportunity and asking our public markets to skip three US practices.