The mid-market offers the best risk-reward by targeting profitable, regional leaders. This segment is less competitive and process-driven, allowing for better valuations and sourcing compared to the overcrowded large-cap space or the hit-or-miss venture capital scene.
The current US-India tariff situation is a stable deadlock. The US can easily replace Indian imports, and India can absorb the minor GDP impact (30-80 basis points). This lack of urgency on either side suggests a prolonged standoff rather than a quick resolution.
While bullish on India, investors should note it's not participating in every global trend. Unlike North Asia (Korea, Taiwan), India is not a player in the "AI picks and shovels" hardware theme. It also lacks the investment drivers seen in Europe related to serving an aging population.
A consistent flow of $3 billion per month from domestic systematic investment plans provides a stable, local buyer base for IPOs. This de-risks private equity exits by reducing reliance on volatile foreign institutional flows, making public markets a more reliable exit path.