"India is slowing down," says Nikhil Raghavan, a principal at Bain Capital LLC. As a result, private equity investments were likely to drop this year.

As Raghavan put it, "There are few companies looking for capital because India is slowing down and (they are questioning) why put up the next factory?"

According to Venture Intelligence, a research firm based in Chennai, there was US$9 billion in total investments from private equity and venture funds in 2012. This year, Raghavan expected these funds to allot US$5 to US$7 billion for Indian firms.

Bain Capital, composed of 15 members, invested in India and Southeast Asia. The company launched its office in India way back 2008. Since that time, Bain Capital has made investments in Indian companies amounting to US$1.3 billion. These investments included Hero Investments who owns Hero MotoCorp Ltd., Kolkata-based Himadri Chemicals & Industries Ltd., Lilliput Kidswear Ltd., and outsourcing company Genpact.