India's private credit market grew from $4.9 billion in H1 2024 to $12.4 billion across all of CY2025 — a 35% year-on-year increase in deal value across 166 transactions, according to EY's Private Credit Report H2 2025. By H1 2026, the market had deployed a further $3.5 billion across 102 transactions, sustaining its pace through a period of global economic uncertainty. The market is projected to reach $250 billion by 2030, according to industry estimates — from approximately $25 billion in total AIF commitments today. India's private credit-to-GDP ratio remains less than one-fifth of the United States equivalent, meaning the structural expansion is not a temporary phenomenon but a decade-long structural shift in how Indian businesses access capital.
This is the growth story every CFO and business owner seeking structured debt should understand — because it explains both why private credit is now accessible for mid-market Indian companies and why the window for well-structured borrowers is open right now.
The baseline: where private credit stood in 2024
The H1 2024 milestone was significant in itself. Private credit deals in India surged 22.4% to an all-time high of $6 billion in the first half of 2024, compared to $4.9 billion worth of deals reported in the same period of 2023. The largest deals of that period — Reliance Logistics secured $697 million from private credit, and Vedanta raised $301 million — reflected the market's early concentration in large-ticket transactions for established conglomerates.
What the headline numbers masked was the distribution underneath. Smaller transactions dominated the landscape in 2024, with 114 deals falling below USD 10 million. The mid-market — transactions between $10 million and $120 million, roughly ₹83 crore to ₹1,000 crore — was underserved relative to its demand. That is precisely where the growth has concentrated in 2025 and 2026.
What drove the acceleration to $12.4 billion in CY2025
Domestic fund maturation. CY2025 deal value reached USD 12.4 billion across 166 transactions — a 35% year-on-year growth in value. Domestic private credit funds now account for over 64% of deal value and 69% of deal volume — the market has genuinely indigenised. Indian-managed funds raised in 2021-2023 reached full deployment mode in 2024-2025. Their local expertise, faster decision-making, and deeper sector knowledge in real estate, healthcare, and manufacturing drove both volume and the broadening of the borrower base beyond large conglomerates.
Refinancing wave. Refinancing deals contributed 46.1% of the 2024 total volume. Businesses that borrowed at elevated rates in 2020-2022 — during a period of capital scarcity and risk aversion — began refinancing into better-structured, more appropriately priced facilities as the private credit market deepened. This created sustained deal flow independent of new expansion activity and brought a new category of borrower into the private credit market: established companies with sound credit profiles seeking better terms rather than companies that could not access conventional debt.
Sector broadening. Real estate, healthcare and industrials remained the largest contributors, with refinancing, acquisition financing, and capex funding driving deal flow. Food and beverage's emergence as the third-largest sector in H1 2026 — reaching 12% of deal value from approximately 1% in H2 2025 — demonstrated that the market's expansion across sectors was accelerating.
The mid-market shift — why this matters for ₹30-200 crore borrowers
The ticket-size mix shifted in H1 2026, with mid-market deals accounting for nearly 61% of total deal value, while deals exceeding US$120 million contributed 18%. This is the most important structural shift in the Indian private credit market for mid-sized businesses. In 2023, large-ticket transactions dominated. By H1 2026, the market's centre of gravity has moved squarely into the mid-market — exactly where India's real estate developers, MSME manufacturers, and healthcare operators sit.
What this means practically: a real estate developer seeking ₹50-150 crore in construction finance, or a manufacturer refinancing ₹75 crore in expensive NBFC debt, is now a standard-size transaction for India's private credit market — not an exception. The lenders who serve this segment are active, experienced, and competing for quality mandates. The constraint for mid-market borrowers is not capital availability. It is credit package quality and lender matching.
The $250 billion projection — what it means right now
India's private credit market is projected to reach USD 250 billion by 2030. India's private credit-to-GDP ratio is still less than one-fifth of what it is in the US. That's not a warning sign — it's headroom.
The gap between India's current private credit penetration and its trajectory is the structural opportunity. Every percentage point of GDP that shifts from bank credit to private credit represents tens of billions of dollars in new deployment — and the mid-market is where that deployment concentrates, because it is too large for microfinance and too complex for standardised bank credit products.
For a business owner evaluating whether private credit is relevant to their capital needs in 2026, the answer is almost certainly yes — if the requirement is above ₹30 crore, the business has adequate security, and the credit story is clean.
Eone Capital arranges private credit of ₹30 crore and above across real estate, MSME, and healthcare. Active pipeline: ₹940 crore.
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