Investors turn to India as private market outpaces regional peers, McKinsey survey shows

India's share of Asia‑Pacific private equity and venture capital deployment rose to about 21% in 2020–24 from roughly 12% in 2015–19.

• India ranked top pick for Asia-Pacific private market investors
• India's private equity and venture capital deals reach $207 billion
• Tech, healthcare, consumer sectors drove private capital deployment.

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India is emerging as the top pick in Asia‑Pacific private markets, offering global investors scale and resilience as activity in the Asia-Pacific slows, a survey by McKinsey & Company and the Indian Venture and Alternate Capital Association showed.

About 31% of the more than 50 limited partners surveyed ranked India first and 76% placed it in their top three picks, signaling a shift in regional capital flows as investors reassess Asia and look beyond China for long‑term growth. More than half expect to increase allocations to India-focused funds, the survey released on Tuesday, showed.

Private markets already account for about 64% of limited partner allocations to India, and investors expect buyout and growth strategies to draw the most interest over the next five years, reflecting a preference for approaches that offer more control, the survey showed.

Private equity and venture capital deal value in India has risen over one-and-a-half times to $207 billion between 2021 and 2025 compared with the previous five-year period, with exits more than doubling to around $120 billion, per the survey.

Among sectors, technology, IT and financial services, pharmaceuticals and healthcare, and consumer sectors accounted for nearly three-quarters of private capital deployed between 2021 and 2025.

India's share of Asia‑Pacific private equity and venture capital deployment rose to about 21% in 2020–24 from roughly 12% in 2015–19.

The country's draw rests largely on its structural growth story, with investors citing entrepreneurial talent, strong economic momentum and rising domestic consumption as the biggest drivers.

Domestic private equity fundraising is rising but remains concentrated among a few large managers, highlighting the need to cultivate the next tier of high‑quality general partners to build a deeper, more resilient private‑capital ecosystem.

Peer insight builds trust and conviction, and McKinsey's research shows investors are leaning into private markets with growing confidence and seeking deeper, more strategic relationships, Kunal Sood, a partner at PE firm Pantheon, said.