India's private credit market doubles to $25 billion in five years, Moody's says

India's private credit market has doubled in size over the past five years, reaching $25 billion, according to a new assessment by Moody's.

The rating agency highlighted that while the market remains small relative to global peers, it possesses significant headroom for expansion driven by the country's robust macroeconomic momentum and widening financing needs.

Moody's noted that the expansion is supported by expanding financing needs across these key sectors.

The real estate sector is the primary beneficiary of this growth, accounting for approximately 40 percent of the total private credit value.

Infrastructure and utilities companies represent the next largest segments, reflecting a shift toward non-bank funding sources for capital-intensive projects.

This diversification suggests that Indian borrowers are increasingly turning to alternative lenders to bridge gaps left by traditional banking channels.

Moody's noted that the expansion is supported by expanding financing needs across these key sectors.