Private Credit Dominates India's Investment Landscape in H1 2026

India's private credit market has witnessed a significant shift, with domestic funds emerging as the dominant force during the first half of 2026. According to the EY Private Credit Report H1 2026, domestic players accounted for approximately 74% of the total deal value and nearly 79% of the deal volume. This trend highlights a maturing financial ecosystem where local capital is increasingly filling the void left by global liquidity constraints.

The total investment in this space reached approximately US$3.5 billion across more than 100 transactions exceeding US$10 million. This activity was primarily fueled by refinancing requirements, holding company (HoldCo) funding, and acquisition financing. Despite global macroeconomic uncertainties, the resilience of the private credit market suggests that Indian corporates are finding alternative, more flexible financing routes to support their growth and capital structure needs.

As the landscape evolves, the reliance on private credit is expected to persist, especially as traditional banking channels remain cautious. The shift toward domestic funding sources provides a buffer against global volatility, ensuring that critical infrastructure and corporate expansion projects continue to receive funding. Investors and policymakers are closely watching this space, as it reflects the broader health of India's corporate debt market and the increasing sophistication of domestic institutional investors in managing complex credit risks.