India's private credit industry has the potential to expand to USD 100 billion by 2050 from the current USD 25-30 billion, according to National Pension System (NPS) Trust Chairperson Dinesh Kumar Khara. Speaking at the IVCA Private Credit Summit 2026, Khara noted that the industry currently contributes only about 0.6 per cent of the country's GDP but has witnessed strong growth in recent years as industry participants mature. As reported by The Economic Times, this growth will be driven by the growing maturity of the ecosystem and expanding domestic capital pools.
The expansion is being supported by the rapid growth of family offices and ultra-high-net-worth individuals (UHNIs) looking at alternative asset classes, along with a widening pool of capital. According to Khara's remarks at the IVCA event, industry players are maturing and the available capital pool is getting enlarged. Family offices and UHNIs are increasingly seeking alternative asset classes, providing a significant boost to the private credit sector's growth trajectory.
On regulation, Khara said authorities are adopting a calibrated approach and reforms would follow as the market evolves. As reported by The Economic Times, he noted that regulators are now quite open in terms of debating the subject, and if convinced, the possibility of reforms is much higher. Drawing a contrast with overseas markets, Khara said India was in a comfortable position with respect to risks from private credit, stating that India is nowhere comparable to the US, making it a very comforting situation for the sector's development.
The NPS Trust is developing a framework to facilitate investments in private credit by pension fund managers and expects the initial process of inviting and screening applications to begin by September. According to The Economic Times, this initiative aims to bring institutional capital into the private credit sector, potentially accelerating its growth and providing a stable funding source for the industry's expansion plans.
