India is emerging as a top choice in Asia-Pacific private markets, offering global investors scale and resilience amid slowing activity across the region. Showed in the survey of McKinsey & Company and the Indian venture.
About 31% of global investors ranked India as their first choice, and 76% placed it in their top three picks. Signaling a shift in regional capital flow as investors reassess Asia and look beyond China for long-term growth.
Private markets already account for about 64% of the limited allocated partners to India. Investors expect buyout and growth strategies to draw interest in the next five years.
A recent survey shows that India has become one of the preferred choices for private equity and venture capital deals for investors in the Asia-Pacific.
India’s private equity and venture capital deals have risen by more than 50% to $207 billion between 2021 and 2025, compared to the previous five years, and exits have more than doubled to $120 billion. It rose to about 21% in 2020-24, and 12% in 2015-19
Sectors like technology, IT, financial services, health care, consumer sectors, and pharmaceuticals accounted for three-quarters of private capital deployed between 2021 and 2025.
The country’s growth rests largely on a structural growth story with strong economic momentum and rising domestic consumption.
Domestic private equity fundraising is rising but remains concentrated among a few large managers, highlighting the need for the next tier of high-quality general partners and a more resilient private capital ecosystem.
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McKinsey’s research shows that investors are leaning into private markets with confidence, seeking deeper, more strategic relationships, said Kunal Sood, a partner at PE firm Pantheon.
