Global private equity firms are likely to invest 48 billion dollars in the Indian market over the next two years, with the real estate sector slated to emerge as a key beneficiary, industry body Assocham said.

Currently, there are over 400 PE firms operating in India and the number would increase by another 70 by 2010. The real estate sector is likely to emerge as the key beneficiary of PE investments as it would give 35-50 per cent profit margin, the chamber said in a paper on 'Private EquityThe Money Tree'.

The other sectors that will see huge PE investments are information technology, banking, financial services, health care and pharmaceuticals, it said. According to estimates by the chamber, about 150 PE funds are scouting for opportunities in India with a fund base of 10 billion dollars.

India attracted 17.14 billion dollars of PE investments in 2007, while the investments were 8.3 billion dollars for China. However in 2006, China had received 13 billion dollars in PE investments, compared to India's 7 billion dollars. "This is indicative of the fact that India has already established an edge over China as far as PE Investments are concerned and this trend would continue for a few more years," Assocham President Venugopal Dhoot said.

The real estate sector cornered 26 per cent share of the total PE investment in value terms, receiving 2.6 billion dollars in 32 deals, followed by the telecom sector with a 21 per cent share and investments of 2.1 billion dollars, the chamber said.

According to the study, private equity has emerged as an attractive mid-point along the financial spectrum for Indian companies seeking to raise capital. Between April 2006 and February 2007, 11.89 billion dollars has come in equity.