Indian Success Factors for a Vibrant Indian VC Industry

Some of the preconditions of the Indian environment that led to the development of the VC industry were a sophisticated stock market that could manage public stock offerings, ^[13] fast-growing high-tech industries, the interest of NRIs familiar with Silicon Valley VC operations and skills, and a pool of skilled engineers in India to generate the creation of wealth.

Several additional success factors continue to draw both domestic and foreign investment in IT. The country has a huge number of small business enterprises unveiling a truly entrepreneurial spirit, a strong public equity market, substantial capital resources, comparatively low wages relative to more developed countries , and a rapidly growing domestic software industry. In line with the unprecedented mobilization in the IT industry, the Indian government has acknowledged the importance of a strong Indian VC industry to sustain innovation and entrepreneurship, and is now trying to catch up to the needed simplification of regulations. In addition, India's vast output of highly skilled manpower is an important prerequisite for the growth of an innovative and entrepreneurial economy and development of a VC industry in India.