India Business Journal - Private credit industry set for $100-bn expansion with rise of family offices, HNIs

MONEY

Private credit industry set for $100-bn expansion with rise of family offices, HNIs

IBJ Bureau
Jul 10, 2026

India’s private credit industry has the potential to expand to $100 billion by 2050 from the current around $30 billion, National Pension System (NPS) Trust Chairman Dinesh Kumar Khara has said.

This expansion will be driven by the growing maturity of the ecosystem and expanding domestic capital pools, the former SBI chairman has said at an event organised by IVCA.

“Perhaps it can become a $100-billion industry at least by the year 2050. That is what my expectation is,” Mr Khara has added at the IVCA Private Credit Summit 2026.

He notes that the private credit industry contributes only about 0.6 per cent of the country’s GDP but has witnessed strong growth in recent years, as industry participants mature.

Mr Khara has said that the expansion is being supported by rapid growth of family offices and ultra-high-net-worth individuals (UHNIs), looking at alternative asset classes, along with a widening pool of capital.

“The industry players are maturing. When it comes to the kind of pool of capital which is available; even that is getting enlarged,” he has said.

He also points out that the financial sector thrives on trust.

The private credit industry, being relatively new, would need to continue earning the confidence of investors and regulators through responsible conduct as it scales up.