valuations sought by Indian companies alongside geopolitical turmoil have weighed on the appetite of private equity (PE) investors, who have moved away from big buyout deals, driving down the amount of capital invested in the market and average deal value in 2025, Bain & Company said in a report. In all, PE investors deployed $19.6 billion in India last year, down by about 33% year-on-year. The expanding scope of Al and its impact on traditionally PE-backed sectors such as IT and tech services also nudged investors to go slow on capital allocation.