Domestic funds take lead in India’s private credit market
The private credit market in India continues to gain momentum, as domestic players trump global funds in the first half of 2026.
Domestic funds strengthened their position in India’s private credit market within the period, accounting for 74 per cent of total deal value and approximately 79 per cent of deal volume, according to a report by EY.
Meanwhile, global funds’ share of private credit deal value in India declined from 68 per cent to 26 per cent year over year.
EY stated that the total deal value attributed to domestic funds in the period reflects a marked increase in deployment by these vehicles and underscores “their growing relevance within India’s private credit market”.
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“The growing share of domestic capital is one of the most significant developments in India’s private credit market,” said Vishal Bansal, partner, debt and special situations at EY India. “Domestic funds are increasingly identifying opportunities across refinancing, acquisition financing and special situations, particularly in the mid-market segment where demand for structured capital remains robust.”
Real estate credit attracted the largest share of investment, accounting for 35 per cent of total deal value in the first half of 2026, while healthcare and food and beverage followed, the report said.
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“India’s private credit market is entering a new phase of evolution,” said Dinkar Venkatasubramanian, partner and national leader – debt and special situations, EY India. “What began as a niche source of alternative capital has become an important pillar of the country’s financing ecosystem.”
Overall, the period recorded 102 private credit deals worth more than $10m (£7.3m) in India, with an aggregate value of $3.5bn. This was significantly down from the $9bn recorded in the first half of 2025, the report added.
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