Global capital, Indian growth rhythm

Over the last two decades, global private equity (PE) firms have approached Asia with an overarching thesis: Capture growth by backing emerging champions in fast-growing economies.

- PUNEET GUPTA & SIDDHARTH SHEKHAR SINGH

For years, this led to capital concentration in China — a market defined by scale, speed, and early-stage dynamism. But as China contends with mounting geopolitical scrutiny, tariff wars, and structural slowdown, the Asian investment lens is undergoing a quiet recalibration. Increasingly, global general partners (GPs) are not just diversifying beyond China — they are re-prioritising India as a long-term strategic hub, rather than merely a hedge.

This shift is not driven by capital availability alone. It stems from a reappraisal of risk-adjusted opportunities. India today offers a compelling combination of macroeconomic resilience, entrepreneurial depth, and institutional maturation. More importantly, it offers a canvas for control-oriented strategies, platform-building, and value creation in sectors where global know-how can be productively applied to local complexities. The opportunity is not in replicating Silicon Valley in Bengaluru; it is in adapting global capital to the distinctive rhythms of Indian growth.

The realignment of strategy by global funds is not simply about replacing China with India. It's about recognising that India represents a different kind of value creation arc — one that is longer-tailed, structurally messier, but increasingly worth the investment in operational depth. India offers scale, yes — but with friction. It offers growth, but often uneven. To succeed here, global GPs must not only deploy capital, but they must also localise conviction, management bandwidth, and value-add muscle.