India's alternative asset market to hit $2tn
Business
Archived — This article has been archived. The information may be outdated.

India's alternative asset market to hit $2tn

The Economic Times··24 Aug

India's alternative investment market could grow more than five-fold from about 400 billion dollars today to over 2 trillion dollars by 2034, according to a report by EY and Julius Baer. Of the current total, 156 billion dollars sits in SEBI-registered Alternative Investment Funds, with the rest held through family offices, offshore vehicles and other unlisted structures.

Prism

What It Means For You

  • If you are a high-net-worth investor, alternative assets like private equity and venture capital are becoming mainstream options beyond stocks and deposits.
  • Sectors like AI, renewable energy and semiconductors are drawing fresh private capital, which could translate into more funded startups and jobs.
  • Retail investors may eventually gain indirect exposure to this growth through funds and public listings as the market matures.

What's Happening

  • India's alternative investment market, estimated at 400 billion dollars, could grow more than five-fold to over 2 trillion dollars by 2034, per EY and Julius Baer.
  • Family offices have grown from about 45 in 2018 to nearly 300 in 2024-25 and are shifting from passive to active investing.
  • Their focus is expanding into AI, climate technology, renewable energy, digital infrastructure, semiconductors and data centres, alongside continued real estate investment.

How India's Ultra-Rich Population Is Fuelling This Shift

  • India had more than 19,000 ultra-high-net-worth individuals, with the number projected to cross 25,000 by 2031, per estimates cited in the report.
  • SEBI-registered Alternative Investment Funds currently hold about 156 billion dollars, a fraction of the broader 400 billion dollar alternative asset pool.
  • The report says stronger governance, professional talent and data-driven decision-making will matter more as family offices scale their private market exposure.
all-newstrending-nowtop-stories

More in Business