Indian private equity funds raised $1.5 billion up to June 2003 as against $1.60 billion in the entire 2002, indicating signs of a pick-up in venture fund activity.

According to Asia Venture Capital Journal data, Indian funds raised about $4.1 billion in 2001 and made large investments in various enterprises in IT and telecom sector, but later the activity declined due to the economic slowdown in Asia, including in India.

Now, with an uptrend in retailing and business process outsourcing and new regulations on venture funding by Securities Exchange Board of India, the private equity corpus, which currently stands at $2.86 billion, would grow significantly in the coming years, AVCJ chairman Donald Schwartz said in Mumbai on Thursday.

Announcing a three-day 'Asia Venture Forum: India', to be held in Mumbai in December, Schwartz said total private equity investments in 2002 stood at $1.5 billion with maximum share of financial services (34.3 per cent), telecom (21.9 per cent), infotech (11.9 per cent) and computer related (10.7 per cent).

ICICI Venture Fund managing director Renuka Ramnath said annually private funds would make investments worth $500 million for the next five years in areas like retail, pharma, outsourcing and auto components.