Private Credit Market in India Hits Record US$9 Billion in H1 2025: EY Report

India’s private credit market is on a roll. According to EY’s Private Credit Report: H1 2025, private credit investments surged to US$9.0 billion in the first half of 2025 — a 53% jump from H1 2024 and nearly three times higher than H2 2024.

The most notable deal involved a huge US$3.1 billion transaction by Porteast Investments (Shapoorji Pallonji Group), which greatly increased overall activity. Adani Group raised $750 million and GMR Infra Enterprises raised $733 million to refinance their existing debt, while Manipal Education and Medical Group raised $600 million for growth funding, according to EY's latest private credit report. Sector showcased strong momentum due to high interest rate expectations and banking's agenda of moving away from Large ticket (including Real estate exposure)

What’s Driving the Surge?

* Global funds are leading the way, handling large and complex transactions.
* Domestic funds continue to be active in the mid-market and opportunistic sectors.
* About 17% of the capital raised in H1 2025 was aimed at growth capital, expansion, and strategic acquisitions, showing cautious but increasing business confidence.

Large deals made up most of the transactions: deals over US$100 million comprised just 18% of the total count but accounted for 80% of the overall deal value.

Key Deals in H1 2025

* Shapoorji Pallonji Group – US$3.1 billion (refinancing)
* Adani Group – US$750 million (Source)
* GMR Infra Enterprises – US$733 million (debt refinancing : Source)
* Manipal Education & Medical Group – US$600 million (growth funding : Source)

Expert View from EY

Vishal Bansal, Partner – Debt and Special Situations, EY India, observed:

> “As public sector banks and NBFCs step back from large-ticket loans, private funds are stepping in, especially in structured and event-driven opportunities. Global funds have regained a strong position, while domestic funds keep driving mid-market and opportunistic deals.

The report also points out emerging opportunities like a secondary market for private credit in India and new perspectives from family offices on this asset class.

India’s Macroeconomic Backdrop

* GDP Growth: India’s real GDP for FY25 was 6.5%, with a robust 7.4% growth in Q4 FY25. Projections for FY26 are expected to be in the 6.3–6.5% range.
* Inflation: CPI inflation dropped sharply from 4.3% in January to 2.8% in May 2025 — the lowest in six years — mainly due to falling food prices.
* Credit Growth: Scheduled Commercial Bank (SCB) lending increased by 11% YoY, although the pace has slowed, and there is still caution in large corporate and unsecured retail lending.

Dinkar Venkatasubramanian, Partner & Head – Debt and Special Situations, EY India, stressed:

> “Private credit is quickly becoming a major part of India’s growth story. With lowering inflation, stable macro conditions, and consistent investments in infrastructure, real estate, and healthcare, the sector is set to grow further in the coming years.”

Private Credit Pulse: Investor Sentiment Remains Bullish

EY’s July 2025 Private Credit Pulse Survey shows:

* Target IRR: 50% of respondents expect 12–18%, while the other half aim for 18–24%
* Hot Sector: Real estate leads the deal flow but is also seen as the riskiest area.
* Outlook: Nearly 90% expect private credit investments to stay positive over the next 2–5 years.
* Liquidity Shift: While half of those surveyed think secondary private credit funds are premature, 27% believe the timing is right, indicating a maturing ecosystem.

The Bottom Line

India’s private credit market is at its strongest point yet, with global funds dominating large deals and domestic funds actively supporting mid-market growth. With decreasing inflation, strong GDP growth, and rising investor confidence, private credit is becoming a more essential part of India’s economic growth.

Read the full EY report here: [EY Private Credit Report H1 2025](https://www.ey.com/content/dam/ey-unified-site/ey-com/en-in/insights/strategy-transactions/documents/2025/08/ey-private-credit-report-h1-2025.pdf)