India a 'standout investment destination' amid global volatility: KKR

The report, published by KKR's Global Macro & Asset Allocation team, emphasized India's unique position as a scalable opportunity amid a shift from benign globalization to great power competition.

India has emerged as a standout investment destination in a turbulent global landscape, driven by ongoing reforms, a resilient consumer base and its relative insulation from trade disruptions,  global private equity major KKR has said in its 2025 Mid-Year Global Macro Outlook.

The report, published by KKR's Global Macro & Asset Allocation team, stressed on India's “unique position” as a scalable opportunity amid a shift from benign globalisation to great power competition.

Highlighting India's robust economic momentum, the report forecasts a steady growth despite global trade tensions sparked by US tariffs, including 25 percent on Mexico and Canada and 10 percent on China.

India's limited exposure to these trade policies, coupled with a stable macroeconomic environment, positions it favourably, the report said. India's ongoing reforms, particularly in infrastructure and digital connectivity, enhance its appeal for private capital, it said.

India's GDP growth will remain resilient, supported by a strong domestic consumer market and structural reforms that bolster long-term stability, it said.

Among the key investment themes emerging globally, KKR counted the rise of intra-Asia trade, where India plays a pivotal role, among them. The report pointed out India's increasing integration into Asian supply chains, particularly in logistics, manufacturing, and consumer markets.

KKR also sees a significant potential in infrastructure and credit investments in India, as the private sector capitalises on these trends.

While a modest depreciation of the rupee is anticipated, the KKR report said this can be hedged, preserving the core investment thesis.

The report also highlighted opportunities in corporate restructuring, particularly in Japan, which could inspire similar strategies in India.

KKR said  the unwinding of strategic holdings and a focus on shareholder value align with India's push for corporate efficiency, potentially unlocking value in sectors such as technology and consumer goods.

The KKR mid-year outlook report said that investors should leverage India's stability and growth potential, with the PE urging investors to "stay the course" and capitalise on these macro tailwinds.