India’s Private Market: A Story of Growth and Opportunity in Asia's Economic Landscape

Insight Article

India’s Private Market: A Story of Growth and Opportunity in Asia's Economic Landscape

November 28, 2025

Private markets in India have become increasingly well-established, offering investors diverse opportunities to engage with the country's impressive growth trajectory. In 2024, India accounted for 20% of all private equity and venture capital investments in Asia, ranking just behind China.¹

India's rapidly expanding economy is a driving force behind the growth in its private markets. In 2022, India achieved the fastest GDP growth among all G20 nations.² By 2023, with a population of 1.4 billion, India surpassed China to become the world's most populous country.³ The IMF projects that by 2027, India will surpass Germany to become the world's third-largest economy.⁴

In Preqin's 2024 and 2025 surveys of private equity investors, India was cited most frequently as the emerging market offering the "best opportunities." All these signposts underscore India's growing appeal among investors.

Demographic tail winds
A key aspect of India's growth story is demographic. The country's working-age population is expanding rapidly, while other major economies, such as China and Europe, are seeing declines in their working populations. India is also witnessing increasing work participation by women; a trend historically linked to sustained economic growth and productivity gains.

And over the past decade, India established a record of economic stability that compares favorably with both emerging and developed markets. The country now boasts one of the world's lowest rates of inflation volatility, contributing to stable growth and interest rates.⁵

For private markets, expanding capital and entrepreneurship
India's private markets are reaping the benefits of the rapid growth in risk capital, leading to a surge in startups and entrepreneurship. India now ranks third globally in the number of venture-backed private unicorns, following the U.S. and China.⁶

Private equity and venture fundraising have tripled in the past decade, with investors committing $78 billion to India-focused PE/VC funds since 2020.⁷The forces driving India's growth are powerful and more enduring than many investors realize, and the development of its private markets reflects India's multifaceted economic success story.

For a deeper exploration of these findings, please read the full-length insight

Download PDF

¹ Sources: Bain & Company; PitchBook; Venture Intelligence; AVCJ; VCCEdge. PE/VC investments Include real estate and infrastructure deals. As of December 31, 2024.² Source: IMF April 2024 Outlook
³ Source: IMF April 2024 Outlook
⁴ Source: IMF April 2024 Outlook
⁵ Sources: MOSPI, Morgan Stanley Research. As of September 30, 2025.
⁶ Source: Morningstar PitchBook Unicorn Index. As of December 31, 2024.
⁷ Sources: EY, IVCA, VCCEdge. As of August 31, 2025.

Morgan Stanley Private Equity Asia

Morgan Stanley Private Equity Asia invests primarily in highly structured minority investments and control buyouts in growth-oriented companies located throughout the Asia-Pacific region.

Risk Considerations:

Alternative investments are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for long-term investors willing to forego liquidity and put capital at risk for an indefinite period of time. Alternative investments are typically highly illiquid—there is no secondary market for private funds, and there may be restrictions on redemptions or assigning or otherwise transferring investments into private funds. Alternative investment funds often engage in leverage and other speculative practices that may increase volatility and risk of loss. Alternative investments typically have higher fees and expenses than other investment vehicles, and such fees and expenses will lower returns achieved by investors.

Alternative investment funds are often unregulated, are not subject to the same regulatory requirements as mutual funds, and are not required to provide periodic pricing or valuation information to investors. The investment strategies described in the preceding pages may not be suitable for your specific circumstances; accordingly, you should consult your own tax, legal or other advisors, at both the outset of any transaction and on an ongoing basis, to determine such suitability.

No investment should be made without proper consideration of the risks and advice from your tax, accounting, legal or other advisors as you deem appropriate.

Morgan Stanley is a full-service securities firm engaged in a wide range of financial services including, for example, securities trading and brokerage activities, investment banking, research and analysis, financing and financial advisory services. Morgan Stanley Investment Management is the asset management division of Morgan Stanley.

Diversification does not eliminate the risk of loss.

Important Information:

The views and opinions are those of the author as of the date of publication and are subject to change at any time due to market or economic conditions and may not necessarily come to pass. The views expressed do not reflect the opinions of all investment personnel at Morgan Stanley Investment Management (MSIM) and its subsidiaries and affiliates (collectively the Firm”), and may not be reflected in all the strategies and products that the Firm offers.

This material is for the benefit of persons whom the Firm reasonably believes it is permitted to communicate to and should not be forwarded to any other person without the consent of the Firm. It is not addressed to any other person and may not be used by them for any purpose whatsoever. It is the responsibility of every person reading this material to fully observe the laws of any relevant country, including obtaining any governmental or other consent which may be required or observing any other formality which needs to be observed in that country. Unless otherwise stated, returns and market values contained herein are presented in U.S. Dollar.

This material is a general communication, which is not impartial, is for informational and educational purposes only, not a recommendation to purchase or sell specific securities, or to adopt any particular investment strategy. Information does not address financial objectives, situation or specific needs of individual investors.

Any charts and graphs provided are for illustrative purposes only. Any performance quoted represents past performance. Past performance does not guarantee future results. All investments involve risks, including the possible loss of principal.

Related Insights