Problem to prize: How Blackstone turned its India biz
Blackstone Inc.'s strategy in India started with uncertainty and faced challenges during the global financial crisis. According to Blackstone President Jon Gray, the firm initially had limited resources and failed to create a clear plan. Gray recounted, "We had sort of a skeleton crew. We didn’t really have a great defined strategy. We couldn’t make the numbers work. So we did basically nothing."
This early setback led Blackstone to reassess its approach to India, stating, "We said, ‘You know what? We just need a better approach.’" The company later adopted a new strategy, taking majority or equal-control stakes in various companies. The focus areas included information technology services, commercial real estate, and domestic manufacturing.
This shift proved successful, making India Blackstone's strongest market for private equity returns globally. Gray expressed confidence in the future, noting, "It takes time to get to a stage where you can really begin to expand your growth rate, and I do feel like India is getting closer and closer to that tipping point."
India's economy has grown significantly since 2005, with its gross domestic product increasing almost fivefold to $3.69 trillion. The country has moved up the global rankings, surpassing Germany, the UK, and France. As of 2023, India became the world's most populous country, overtaking China. The economy grew by 7.6% in fiscal 2026, as reported by the World Bank.
However, Mohandas Pai, former CFO of Infosys Ltd., highlighted the talent advantage India possesses. Each year, around 11 million people graduate from Indian colleges, including roughly 800,000 to 1 million engineers or near-engineers. About 500,000 of these individuals have the potential to be trained for the technology industry.
Pai suggested that the US and India could combine their strengths to compete globally, noting that India has the talent while the US offers financial capital, markets, and marketing. "We can conquer the entire world," he stated.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
