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India Private Credit Could Reach USD 100 bn By 2050
ECONOMY & POLICY

India Private Credit Could Reach USD 100 bn By 2050

Dinesh Kumar Khara, chairperson of the National Pension System Trust (NPS Trust), projected that India's private credit industry could expand to USD 100 billion (bn) by 2050 from the current USD 25-30 billion (bn), and set out the estimate at an industry event in Mumbai. He delivered the forecast at the IVCA Private Credit Summit and framed the growth as contingent on deeper capital pools and maturing market participants. The projection was presented as a long-term outcome rather than an immediate expectation.

Khara said the sector currently contributes about 0.6 per cent of gross domestic product but has recorded strong growth as participants gain experience and systems evolve. He noted that expansion is supported by the rapid growth of family offices and ultra-high-net-worth individuals (UHNIs) seeking alternative asset classes, which has widened the pool of available capital. The evolving investor base and heightened professionalisation of managers were cited as central to scaling private credit.

On governance and oversight, Khara indicated that trust remains fundamental to the financial sector and that private credit, being relatively new, will have to earn the confidence of both investors and regulators through responsible conduct as it scales. He observed that authorities are taking a calibrated approach to regulation and that the likelihood of reforms will increase as the market demonstrates maturity and as policy makers engage in debate. Drawing a contrast with overseas markets, he judged India to be in a comfortable position relative to the risks seen in the United States and said regulators continue to monitor developments closely.

Khara also said the NPS Trust is developing a framework to enable pension fund managers to invest in private credit and indicated that the initial process of inviting and screening applications is expected to begin by September. He presented the move as part of broader efforts to create regulated channels for institutional capital while maintaining investor protection. The chairman characterised the industry as promising but one that will require sustained diligence to realise the long-term potential.

Dinesh Kumar Khara, chairperson of the National Pension System Trust (NPS Trust), projected that India's private credit industry could expand to USD 100 billion (bn) by 2050 from the current USD 25-30 billion (bn), and set out the estimate at an industry event in Mumbai. He delivered the forecast at the IVCA Private Credit Summit and framed the growth as contingent on deeper capital pools and maturing market participants. The projection was presented as a long-term outcome rather than an immediate expectation. Khara said the sector currently contributes about 0.6 per cent of gross domestic product but has recorded strong growth as participants gain experience and systems evolve. He noted that expansion is supported by the rapid growth of family offices and ultra-high-net-worth individuals (UHNIs) seeking alternative asset classes, which has widened the pool of available capital. The evolving investor base and heightened professionalisation of managers were cited as central to scaling private credit. On governance and oversight, Khara indicated that trust remains fundamental to the financial sector and that private credit, being relatively new, will have to earn the confidence of both investors and regulators through responsible conduct as it scales. He observed that authorities are taking a calibrated approach to regulation and that the likelihood of reforms will increase as the market demonstrates maturity and as policy makers engage in debate. Drawing a contrast with overseas markets, he judged India to be in a comfortable position relative to the risks seen in the United States and said regulators continue to monitor developments closely. Khara also said the NPS Trust is developing a framework to enable pension fund managers to invest in private credit and indicated that the initial process of inviting and screening applications is expected to begin by September. He presented the move as part of broader efforts to create regulated channels for institutional capital while maintaining investor protection. The chairman characterised the industry as promising but one that will require sustained diligence to realise the long-term potential.

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