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Private markets in India have become increasingly well-established, offering investors diverse opportunities to engage with the country's impressive growth trajectory. In 2024, India accounted for 20% of all private equity and venture capital investments in Asia, ranking just behind China.1
India's rapidly expanding economy is a driving force behind the growth in its private markets. In 2022, India achieved the fastest GDP growth among all G20 nations.2 By 2023, with a population of 1.4 billion, India surpassed China to become the world's most populous country.3 The IMF projects that by 2027, India will surpass Germany to become the world's third-largest economy.4
In Preqin's 2024 and 2025 surveys of private equity investors, India was cited most frequently as the emerging market offering the "best opportunities." All these signposts underscore India's growing appeal among investors.
Demographic tail winds
A key aspect of India's growth story is demographic. The country's working-age population is expanding rapidly, while other major economies, such as China and Europe, are seeing declines in their working populations. India is also witnessing increasing work participation by women; a trend historically linked to sustained economic growth and productivity gains.
And over the past decade, India established a record of economic stability that compares favorably with both emerging and developed markets. The country now boasts one of the world's lowest rates of inflation volatility, contributing to stable growth and interest rates.5
For private markets, expanding capital and entrepreneurship
India's private markets are reaping the benefits of the rapid growth in risk capital, leading to a surge in startups and entrepreneurship. India now ranks third globally in the number of venture-backed private unicorns, following the U.S. and China.6
Private equity and venture fundraising have tripled in the past decade, with investors committing $78 billion to India-focused PE/VC funds since 2020.7 The forces driving India's growth are powerful and more enduring than many investors realize, and the development of its private markets reflects India's multifaceted economic success story.
For a deeper exploration of these findings, please read the full-length insight
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