Investors Increasingly Choose India for Private Markets in APAC
Global investors are favoring India as a key destination for private markets investment in Asia-Pacific amid slowing activity elsewhere in the region, with 31% of more than 50 limited partners surveyed ranking it as their top choice. According to a report by Reuters citing a survey by McKinsey and the Indian Venture and Alternate Capital Association, 76% of respondents placed India within their top three investment destinations in APAC, and more than half expect to increase allocations to India-focused funds.
Survey Findings on LP Preferences
Private markets already account for around 64% of LP allocations to India, with investors anticipating that buyout and growth strategies will attract the greatest interest over the next five years. The survey highlights that private equity and venture capital deal activity in India has expanded, as total deal value reached $207 billion between 2021 and 2025, more than one-and-a-half times the level from the previous five-year period. Exits in India more than doubled to roughly $120 billion over the same timeframe, according to the survey.
India’s Growing Share in APAC Investments
India’s share of Asia-Pacific private equity and venture capital deployment increased to about 21% between 2020 and 2024, up from around 12% during 2015–2019. Technology, IT services, financial services, pharmaceuticals, healthcare, and consumer businesses accounted for nearly three-quarters of private capital deployed between 2021 and 2025. Investors are drawn by factors such as India’s entrepreneurial talent, strong economic momentum, and rising domestic consumption, which support long-term opportunities in the region.
Challenges in India’s Private Capital Ecosystem
The survey noted that domestic fundraising in India remains concentrated among a small number of large managers, emphasizing the need to develop a broader base of high-quality general partners to strengthen the country’s private capital ecosystem. According to Private Equity Wire, these trends underscore India’s resilience as global investors seek scale in APAC private markets.
