According to reports from Bloomberg, Blackstone President Jon Gray revealed that India has become the source of the firm's highest private equity returns globally. As Gray explained, the firm initially had a 'skeleton crew' with no defined strategy and couldn't make the numbers work, leading to minimal activity. However, this setback prompted Blackstone to reassess its approach and shift to taking majority or equal-control stakes in sectors including information-technology services, commercial real estate, and domestic manufacturing. Gray noted that the firm sees further opportunities as India's economy continues to expand, stating 'It takes time to get to a stage where you can really begin to expand your growth rate, and I do feel like India is getting closer and closer to that tipping point.'
As reported by Bloomberg, India's economic trajectory has been remarkable, with gross domestic product growing almost fivefold to $3.69 trillion since 2005. The country has climbed to fourth place globally in GDP rankings, surpassing Germany, the UK, and France. Growth accelerated to 7.6% in Fiscal 2026, cementing India's position among major economies. India is home to 1.47 billion people and became the world's most populous country after surpassing China in 2023. Gray noted that India is 'getting closer and closer to that tipping point' where it can expand its growth rate significantly.
According to Bloomberg reports, former Infosys CFO Mohandas Pai highlighted India's educational infrastructure, noting that 11 million people graduate annually from colleges in the country. This includes approximately 800,000 to 1 million engineers or near-engineers, with around 500,000 considered strong enough for technology industry training. Pai argued that the combination of India's human capital with American financial capital, markets, and marketing could dominate global technology competition, stating 'We can conquer the entire world.' He acknowledged that there will be bumps in the partnership but emphasized the potential for global dominance through this collaboration.
As reported by Bloomberg, Gray acknowledged that infrastructure challenges, including both physical and legal capital markets infrastructure, had historically held India back. However, he credited Prime Minister Narendra Modi's administration with doing a 'phenomenal job' in addressing these issues. Gray noted that 'a lot of things are falling into place' for India's development trajectory, emphasizing the importance of patience in the investment strategy.
According to Bloomberg reports, Gray acknowledged that friction points remain between the US and India, including tariff issues and energy costs driven up by the US war with Iran. However, he emphasized that the trajectory of US-India relations has consistently moved toward closer ties as India deepens its engagement with capitalism. Gray concluded that patience has been crucial for Blackstone's India investments, with the firm now positioned to capitalize on what he sees as India's approaching 'tipping point' for sustained growth acceleration.
