India’s private credit market is undergoing a structural transformation, fueled by robust macroeconomic tailwinds and an increasing demand for alternative financing. With over $20 billion in private credit deals executed between CY22 and H1 2024 and a record $6 billion deployed in H1 2024 alone the segment is reaching unprecedented scale and maturity.
The AUM of India-focused private debt funds has grown 25x in the last decade, reaching $17.8 billion in 2023, and continues to expand at a CAGR of ~28.3%. Globally, private credit AUM has crossed $2.1 trillion, further validating the asset class as a mainstream alternative.
This growth is underpinned by India’s strong economic fundamentals:
Sources: IMF, DPIIT, EY, Preqin
As traditional banking channels remain cautious and mid-market businesses seek customized capital solutions, performing credit emerges as a high-yield, collateral-backed investment strategy that bridges this capital gap—while offering downside protection and strong covenant control to investors.
