India’s Private Credit: A New Engine of Yield

India’s private credit market is expanding rapidly as traditional bank lending faces regulatory constraints and balance-sheet limitations, creating financing gaps across mid-market corporates, infrastructure, real estate, and structured credit. Private credit is emerging as a critical alternative capital source, offering flexible structures, strong collateralization, and attractive risk-adjusted yields. The ecosystem is broadening beyond NBFCs and banks to include domestic and global credit funds, alternative asset managers, and institutional investors. This growth is being supported by India’s strong macro fundamentals, rising private capital participation and increasing demand for financing solutions. As transmission of credit shifts beyond conventional channels, private credit is becoming an integral component of India’s alternative investment landscape, with expanding opportunities across resilient, income-generating and capital-protected strategies.