Preqin has announced that India's infrastructure sector is experiencing notable growth and investment, driven by increasing development demands and enhanced participation from private capital. Global investors maintain a positive outlook on the sector's future.
According to Preqin data, the number of infrastructure deals in India decreased from 139 in 2022 to 92 in 2023. However, India remains the most active market for infrastructure deals in the Asia-Pacific region. By the end of 2023, the total deal value reached $14.1 billion, with an additional $9.5 billion generated from 77 deals in the first half of 2024, highlighting the sector's dynamic nature and growth potential.
Government spending has played a significant role in influencing infrastructure deal flow. The 2024 budget set an ambitious capital expenditure target of $133 billion, focusing particularly on railways and roads. Preqin reports that over $20 billion in private capital investment is expected to be necessary to meet these government infrastructure goals.
The landscape of infrastructure funds in India is evolving as well. Assets under management have nearly doubled since 2010, reaching $8.7 billion by the end of 2023. Experts suggest that foreign investors might find better opportunities in purchasing existing operating assets rather than participating directly in government spending. This highlights the importance of local knowledge and emphasizes renewable energy investments, particularly solar power, as critical areas for future growth.
India’s economy is rapidly expanding due to strong GDP growth, favorable demographics, extensive infrastructure investment, and economic reforms which attract global private capital. According to Preqin reports and data, private capital assets under management have more than tripled over the past 15 years, reaching a record $124.3 billion by the end of 2023.
Preqin was founded in 2003 as a data provider serving over 48,000 clients with insights on alternative assets to enhance decision-making within the finance sector. The company employs 500 researchers among its more than 1,500 staff across 15 global offices.