New Delhi, March 31 – India’s alternative investment industry is poised for significant expansion, with total assets under management (AUM) expected to reach around $276 billion by 2030, up from $152 billion in December 2025, according to a new report released on Tuesday.
The CareEdge Ratings report highlighted that this momentum is likely to continue, driven by increasing domestic wealth, improved financial awareness, and a supportive regulatory environment.
The report noted that India is on track to become the world's third-largest economy by 2028, making it an attractive destination for both domestic and global investors.
Between 2025 and 2030, the alternative investment industry is expected to grow at a compound annual growth rate (CAGR) of 11 to 14 percent, outperforming mature markets.
A key driver of this growth is the increasing number of high-net-worth individuals (HNIs) in the country.
India's affluent population is expected to more than double between 2022 and 2027, leading to higher demand for sophisticated investment products such as Alternative Investment Funds (AIFs).
These investors are increasingly seeking diversified and higher-yielding options beyond traditional investments like mutual funds and fixed deposits.
Domestic investors are also playing a more prominent role in the alternative investment ecosystem. Their share of total investments has steadily risen to over 66 percent as of December 2025, while foreign investors, though their share is declining, continue to increase their investments in absolute terms.
The report further pointed out a growing preference for private credit within alternative investments.
Investors are favoring private credit due to its relatively stable returns, predictable cash flows, and lower sensitivity to market volatility.
At the same time, the demand for flexible financing from mid-sized companies and stricter bank lending norms have created more opportunities in this segment.
With regulatory support from the market watchdog SEBI and favorable government policies, the alternative investment space in India is becoming more transparent and structured.
As a result, industry players are well positioned to benefit from the next phase of growth, making alternative investments an increasingly important part of India's financial landscape.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
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