India is emerging as a preferred destination for private markets investment in APAC, as global investors seek scale and resilience amid slowing activity elsewhere in the region, according to a report by Reuters citing a survey by McKinsey and the Indian Venture and Alternate Capital Association.
Among more than 50 LPs surveyed, 31% ranked India as their top investment destination in APAC, while 76% placed the country within their top three choices. More than half of respondents said they expect to increase allocations to India-focused funds.
Private markets already account for around 64% of LP allocations to India, with investors expecting buyout and growth strategies to attract the greatest interest over the next five years.
Private equity and venture capital deal activity in the country has expanded significantly in recent years. Total deal value rose to $207bn between 2021 and 2025, more than one-and-a-half times the level recorded in the previous five-year period, while exits more than doubled to roughly $120bn over the same timeframe.
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, according to the survey.
Investors are reportedly drawn by India’s structural growth drivers — including entrepreneurial talent, strong economic momentum and rising domestic consumption — as key factors supporting long-term investment opportunities.
However, the survey noted that domestic fundraising remains concentrated among a small number of large managers, highlighting the need to develop a broader base of high-quality general partners to strengthen the country’s private capital ecosystem.
