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Blackstone Inc. sees India moving closer to a turning point for foreign capital after two decades of investing in the country. The alternative asset manager now ranks India as its strongest private equity market by returns, according to Blackstone President Jon Gray.
Blackstone’s early expansion in India did not progress as planned. The firm entered the market with a small team and struggled to find investments that met its financial targets. The global financial crisis later added pressure and slowed its plans.
Gray said Blackstone initially lacked a clear plan for India. The firm found it difficult to make potential investments work financially and completed very few deals during its early years in the country.
“We had sort of a skeleton crew. We didn’t really have a great defined strategy,” Gray told Bloomberg Television’s Wall Street Week. “We couldn’t make the numbers work. So we did basically nothing.”
Blackstone later changed its investment model. Instead of relying mainly on minority investments, the firm started taking majority positions or stakes that gave it equal control. It also focused on areas where it saw stronger growth opportunities.
“We said, ‘You know what? We just need a better approach,’” Gray said.
The company increased its exposure to information technology services, commercial real estate and domestic manufacturing. That strategy helped India become Blackstone’s top private equity market globally by investment returns, according to Gray.
Gray said India could attract more foreign investment as the economy grows and its financial markets deepen. He described the country as moving closer to a stage where growth could accelerate after years of economic development.
“It takes time to get to a stage where you can really begin to expand your growth rate,” Gray said. “And I do feel like India is getting closer and closer to that tipping point.”
India’s gross domestic product has expanded sharply since 2005. The economy has grown to about $3.69 trillion from less than one-fifth of that level two decades ago, according to figures cited in the report.
India has also moved higher among the world’s largest economies. At the same time, its population has reached about 1.47 billion. India surpassed China as the world’s most populous country in 2023.
The World Bank reported economic growth of 7.6% in fiscal 2026. Meanwhile, foreign direct investment reached $30.7 billion in the second quarter of 2026, according to figures cited in reports on Blackstone’s India outlook.
India’s large pool of skilled workers also supports its position as an investment market. Mohandas Pai, former chief financial officer of Infosys, said around 11 million students graduate from Indian colleges each year.
That total includes roughly 800,000 to 1 million engineers or people with similar technical qualifications. Pai said about 500,000 could receive further training for jobs in the technology industry.
He said India could combine its workforce with US capital, markets and marketing capabilities. “We can conquer the entire world,” Pai said while describing the possible scale of cooperation between the two countries.
However, Gray also pointed to risks that could affect investment conditions. These include trade disputes between India and the United States, tariffs and higher energy costs linked to geopolitical tensions.
“There will be bumps,” Gray said.
Blackstone continues to invest in India while also selling selected assets as market values rise. The firm has raised a $13.1 billion Asia-focused fund and has also sold stakes in Indian assets, including real estate holdings.
Its strategy now depends on whether India’s public and private markets can continue attracting enough capital to support large investments, sales and public listings as foreign investors increase their exposure to the country.
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