Non-public fairness agency KKR sees outsized opportunities for infrastructure investments in India, helped by tailwinds from growing urbanisation, authorities assist and demand for power manufacturing and transmission.
Its key focus areas in India proceed to be roads, renewables, logistics, and associated belongings.
On this newest “Ideas From the Street” report, the PE agency stated after a 12 months in which Indian equities logged their weakest relative efficiency since 1998 and international traders pulled again, it was of the view that situations might enhance meaningfully as 2026 progresses.
“Fiscal impulses, wholesome credit score creation, and rising capital markets participation by retirement savers all level to raised earnings momentum in the approaching 12 months. Consequently, we now suppose EPS for the nation might develop in the mid-teens in 2026.”
The personal fairness main, which toured a number of Indian cities assembly regulators, CEOs, and policymakers, says sentiment on the bottom is cautious — however fundamentals are strengthening beneath the floor.
On the coronary heart of investor anxiousness is synthetic intelligence. Within the first 9 months of FY25-26, India’s high 5 IT companies added simply 17 web staff, down sharply from 17,764 a 12 months earlier, reflecting automation and AI-led effectivity features.
With IT providers accounting for roughly half of India’s $400 billion in annual providers exports, fears of disruption have weighed on markets, however KKR contends that AI might finally improve, not undermine, India’s providers engine, pointing to fast development in World Functionality Centres and a thriving start-up ecosystem.
Extra broadly, the agency sees India’s 10–11% nominal GDP development as a robust structural tailwind. Fiscal coverage stays supportive, with authorities capex projected to develop about 11% year-on-year and add roughly 0.5 share factors to general development, it stated.
Consumption stays the core development engine. India is now the world’s fourth-largest consumption market, with personal consumption practically tripling over the previous decade.
Roughly 200 million city customers now have significant discretionary spending energy, whereas prosperous households are projected to rise five-fold this decade.
In the meantime, capital markets have deepened considerably. With market capitalisation exceeding $5 trillion, India now hosts the world’s fifth-largest inventory market.
Non-public markets have matured as properly, with different belongings underneath administration estimated at round $400 billion.
Whereas dangers stay — from AI disruption to weak agricultural productiveness and uneven manufacturing development, KKR stated that amid cautious sentiment and cyclical headwinds, India could also be getting into a extra sturdy, consumption-led part of development that long-term traders can’t ignore.
Printed on February 19, 2026
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