Tax uncertainty continues to be a major cause of concern for PE players in India and can be considered as one of the key reasons for deal activity in India to have ebbed over the last couple of years.
In its election manifesto, BJP had stated: "The UPA government has unleashed 'tax terrorism' and 'uncertainty', which not only creates anxiety amongst the business class and negatively impacts the investment climate, but also dents the image of the country."
The PE industry is, therefore, hopeful that with the new government in place, Budget 2014 will introduce proposals that usher in an era of certainty for the investing community.