Private credit in India continues to expand, with $ 12.4 billion deployed in CY 2025
Real estate received the highest allocation from the private credit funds followed by healthcare and industrial products, with capex funding and refinancing as key drivers
Participation of domestic private credit managers saw an uptick in second half of the year
India’s Private Credit Market Sees Record $ 12.4 Billion Capital Deployment in CY 2025: EY Report
The deal momentum gained traction in real estate and healthcare sectors driven by stable interest rate expectations and structural funding gaps left by banks, said the report
Summary
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Private credit investments in India hit an all-time high of $ 12.4 billion in CY25, rising from $ 9.63 billion in CY24, according to an EY report.
The year closed with 166 transactions and a 35% jump in deal value, even as activity moderated in the second half after a strong first half.
The second half of the year saw a small jump in deal value in the private credit space to $ 3.4 billion up from $ 3.3 billion during the same period last year.
“India’s credit landscape remained resilient through H2 2025, supported by easing financial conditions and strong domestic demand. While Bank and NBFC lending picked up, private credit continued to play a critical role in addressing refinancing needs, complex transactions, and selective capital expenditure funding,” said Dinkar Venkatasubramanian, Partner and Leader, Debt and Special Situations, EY India.
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The report underlined that sectors such as real estate, healthcare and industrials remained the largest contributors - driving the deal flow in private credit space, with more than 35% of capital deployed in H2 2025 being allocated towards refinancing, acquisition financing, and capex funding.
Further, deal value remained concentrated in a limited number of large-sized transactions. “While deals exceeding $100 million represented 9% of total deal count, they accounted for nearly 36% of aggregate deal value,” said the report.
Notable transactions during the period included $ 193 million raised by a PharmEasy group entity and $ 183 million raised by a Shapoorji Pallonji Group entity for refinancing purposes, as well as US$182 million secured by the GMR Group for refinancing and further investments across group companies, according to EY.
Another insight was on domestic private credit funds, which accounted for a larger share of investments compared to global funds in H2CY25, according to the report.
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“The market demonstrated steady momentum, supported by stable interest rate expectations and structural funding gaps left by banks, particularly in real estate and healthcare sectors. During the period, domestic private credit funds accounted for a larger share of investments compared to global funds, reflecting the deepening of India’s domestic private credit ecosystem,” read the report.