<p>India, as it stands today, is on the trajectory of becoming the world’s 3rd largest economy by 2020. Healthcare continues to form a key ingredient for the success of India’s raising economy. However, one would need an association of true intellect and expertise to unravel India’s true potential. Over time, investments in the healthcare sector in India have shown steady growth. Healthcare is an industry clearly set to grow in India, and one in which private equity and venture capital can play an active role. Entrepreneurs already value PE and VC funds for the skills, expertise and network they bring to the table that other sources of capital are unable to provide. The paper deals with the above aspects and is divided into two parts. Part I is all about the Private Equity in India, its investments and exits on an overall. Part II deals with the Private Equity investments specific to the Health care sector in India, the investment strategies, attractive factors of investments in the sector, exits, drivers and modes of exit, challenges and trends.</p>