India’s alternative investment market could grow $2 trillion by 2034: Julius Baer-EY report

India's alternative investment market is poised for significant growth, potentially reaching over $2 trillion by 2034, according to a report by EY and Julius Baer. This expansion is driven by rising participation from high-net-worth investors and a demand for higher-yielding, less-correlated assets, leading to increased capital inflows into private markets.

The report estimates that India's alternative investment assets currently stand at around $400 billion, with $156 billion in SEBI-registered Alternative Investment Funds (AIFs) and the remainder comprising offshore vehicles, family offices, and unlisted structures. The shift in investment strategies among Indian family offices is a key factor in this growth, as they move beyond passive investing and increasingly engage as limited partners in private equity and venture capital funds, co-invest, and make direct investments.

Their focus is expanding towards sectors such as artificial intelligence, climate technology, renewable energy, digital infrastructure, energy storage, semiconductors, electronics manufacturing, cloud services, and data centres, with real estate remaining an important area of investment.

Brief written by urgent.news from Hindu BusinessLine's own syndicated text. Machine-written — may contain errors; check the original before relying on it.