Venture Capital firm Sequoia Capital will invest $500 million to $600 million in the next couple of years in Indian companies focused on the internet mobile, specialised retailing, telecom and knowledge process outsourcing space. [via Hindu]

The firm has already invested $600 million to $700 million in 40 Indian companies including Cafe Coffee Day, Idea Cellular, Paras Pharmaceuticals, shaadi.com, SKS microfinance. Sequoia Capital India’s Associate Ravi Shankar expects India’s venture capital business to grow further from its current $15 billion to $20 billion size.

Separately, Bessemer Venture Partners has appointed Devesh Garg managing director for India, to be based in Mumbai. Garg has been with Bessemer since 2003 as an operating partner and was most recently CEO of Bessemer-funded semiconductor start-up Tilera. [More at Financeasia.com]

Meanwhile, US-based venture capital and private equity fund Trident Capital’s managing director Venetia Kontogouris told ET that it does want to be in India but does not have plans to have an India-specific fund.

I thought Kontogouris’ comment on the rupee was interesting. She expects the rupee to strengthen further against the dollar, going even to Rs 35 and said the only way for Indian exporters to weaken the impact of this on their revenues is to move up the value chain, take fixed bid projects, which may have higher risk but are for a fixed rate.

On the high attrition rates in the Indian technology companies, Kontogouris seems less worried for now. “When attrition is between 15 percent to 18 percent, it is manageable, and the companies we invest in, typically have attrition in this range,” she said. “We believe money is a commodity and it is a focus on people, people and people that is necessary. Over 18 percent attrition becomes a significant issue and as the rupee strengthens, people will pay more attention to it.”

• Report: Sequoia Capital To Raise $500 Million Fund