Private Equity funds invest in start-ups or technical projects. Private equity firms provide financial and managerial assistance to their portfolios. The investment made by private equity has been continuously increasing in India, which helps to boost the Indian economy. Hence it becomes vital to study the mechanism of private equity firms and the status of private equity investment in India. The current study revealed that private equity selects their portfolio firms after in-depth due diligence that helps to take suitable action to the prevention of potential threats. Diligence also helps to know the strength and weaknesses of the portfolio, which is vital before making an investment decision. The value of the investment has been continuously increasing from 120 US Million $ in 2001 to 77000US Million $ and it is also found that the global economic shocks directly affect the PE investment value such as the Dec 2007- June 2009 US recession, covid 19 etc.