Moody’s report suggests India’s private credit market could double by FY30

Mumbai: India's private credit market, which has doubled over the past five years to about $25 billion in assets under management at the end of 2025, is positioned for sustained growth as rising corporate financing needs and constraints on traditional lenders drive demand for alternative capital, Moody's Ratings said. The report shows that maintaining its recent growth trajectory would take the market to about $50 billion by FY30.

“Private credit in India is increasingly becoming a popular alternative to traditional loans,” Moody’s said, adding that credit demand in India is strong amid infrastructure development needs in a relatively stable macroeconomic environment. This segment is evolving into an established source of credit for businesses, rather than just a last resort to fill funding gaps.

The report said that the investor base for India-focused private credit funds is diversified and will continue to broaden. “Private credit in India appeals to investors, especially those who target long-term opportunities and can underwrite idiosyncratic risks, because it offers attractive returns to compensate for high risks,” the report said.


Private credit funds in India source capital from global and domestic asset managers; sovereign and quasi sovereign investors; family offices; and high-net-worth individuals.

Moody’s said that borrowing by real estate and infrastructure companies, and promoter financing across various sectors will remain primary drivers of India’s private credit market. There will be more large transactions as the pool of funds expands. Currently, most private credit transactions are smaller than $100 million. Large, multibillion-dollar deals are sporadic, and many of them are for refinancing.

Real estate accounts for about 40% of India's private credit market, while infrastructure is the next-largest segment and promoter financing remains another key pillar, Moody's said. The ratings agency pointed to transactions including GMR Group's nearly $1 billion fundraising from private credit investors, the Adani Group's $750 million bond issuance, and Apollo-managed funds' fully subscribed to $500 million of senior secured notes backed by transmission assets of Adani Energy Solutions as evidence of growing appetite for large infrastructure financings.

Promoter financing for refinancing, liability management and stake acquisitions remains another key segment of the market. Moody's cited the Shapoorji Pallonji Group's Rs 28,600 crore financing, backed by its 9.18% stake in Tata Sons and real estate assets, as India's largest private credit transaction. The agency said refinancing transactions have become a key use case for private credit, highlighting Vedanta Resources' $1.25 billion facility in 2023, later refinanced through bank loans and bonds, and a $660 million financing raised by the founders of Greenko Group in 2025 to increase their holding in Greenko Energy Holdings.