Indian Economy News

Moody's Report Suggests India's Private Credit Market Could Double by FY30

India's private credit market is expected to witness sustained expansion, with assets under management projected to double from Rs. 2.11 lakh crore (US$ 25 billion) at the end of 2025 to 4.72 lakh crore (US$ 50 billion) by FY30, according to a report by Moody's Ratings. The report noted that the market has doubled over the past five years, supported by rising corporate financing requirements, infrastructure investment and increasing demand for alternative sources of capital. Private credit is emerging as a mainstream financing option for businesses rather than merely serving as a substitute for traditional bank lending. A relatively stable macroeconomic environment, coupled with strong credit demand, is expected to further strengthen the market, while a diversified investor base comprising global and domestic asset managers, sovereign investors, family offices and high-net-worth individuals continues to support long-term capital deployment.

Real estate remains the largest segment of India's private credit market, accounting for around 40% of total assets, followed by infrastructure and promoter financing. Moody's highlighted that expanding fund availability is expected to support larger transactions across sectors, with refinancing and liability management emerging as key areas of activity. Recent transactions, including fundraising by the GMR Group, the Adani Group and Greenko Group, demonstrate the growing appetite of private credit investors for infrastructure and corporate financing opportunities. As the market matures, larger and more diversified transactions are expected to strengthen India's alternative financing ecosystem, improve access to long-term capital and complement the country's economic growth and infrastructure development objectives.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.