October 08, 2025 — India's capital markets have defied global economic headwinds by producing exceptional growth over the past two years - a performance that has positioned India as one of the world’s most attractive opportunities for both investors and global banks.
India’s equity and fixed-income markets have witnessed unprecedented growth, driven by surging retail investor participation, robust institutional support, and policy reforms. Meanwhile, the Indian private credit market has expanded rapidly, with alternative lenders filling gaps left by banks. A new report from Crisil Coalition Greenwich, India’s capital markets: From potential to powerhouse, quantifies the growth in Indian capital markets and assesses opportunities for future expansion.
“India's markets have achieved a unique balance of retail, domestic institutional and foreign investors, contributing to market stability and rendering it an attractive destination for global investors,” says Gaurav Arora, Global Head of Competitor Analytics at Crisil Coalition Greenwich. “The country presents an equally compelling growth story for banks, with India's capital markets offering a unique opportunity for expansion and revenue growth.”
Rapid growth of India’s private credit market
India's private credit sector has also exhibited a pronounced escalation in activity over the past 24 months. The private credit market has recorded a substantial increase in deal volumes, with a total of $8.5 billion in private credit transactions in FY23–24. This uptrend is poised to continue, as this market enters a new phase of expansion and growth, underpinned by rising investor sentiment and an expanding universe of active credit funds.
India-focused private debt funds have been nothing short of remarkable, with assets under management experiencing a 25-fold increase from $0.7 billion in 2010 to $17.8 billion in 2023, outpacing the growth of venture capital and public equity funds in the country. This exponential growth has catapulted India to the forefront of private credit expansion in the APAC region, in terms of percentage growth.
India: A key growth market for global banks
India’s financial landscape has evolved to the point where it is no longer viewed as an "emerging play" by banks, but rather as a core strategic market, offering expanding revenue pools and significant growth opportunities.
India's capital markets have undergone a remarkable transformation, driving a substantial expansion of the revenue pool for financial services. The investment banking fee pool has grown significantly, reaching $1.2–1.5 billion in 2024, fueled by soaring trading commissions and exchange revenues resulting from record-breaking volumes.
As a result of this growth, the Indian capital markets present a multi-dimensional opportunity for banks, characterized by a thriving equity market, an underserved bond and private credit market ripe for disruption, and a high-growth economy fueling burgeoning financing demands.
By leveraging India's high-growth economy, digital adoption, and supportive demographics, banks can position themselves for success, participating in secondary markets, underwriting, and financing the country's massive investment needs, and innovating products for a new generation of investors.
“With a strategic approach and strong local integration, banks can unlock substantial rewards from India's dynamic financial market growth story, driving growth, innovation and profitability,” says Gaurav Arora.