Blackstone plans to double its investments in India to $100 billion over the next five years from the current $50 billion, as it looks to invest is in real estate, digital infrastructure, financial services, healthcare and manufacturing sectors.
In an interview with CNBC-TV18, Blackstone President Jon Grey reaffirmed the firm’s long-term confidence in India despite market volatility. He noted that the country’s economic growth, expanding middle class, infrastructure development and technology capabilities are factors that support its investment strategy.
“As long as the economy continues to grow, and the government continues to support that growth with policies that give foreign investors certainty and clarity, I think the opportunity set will grow,” Gray said.
Unlike in developed markets, where investors can acquire established businesses and assets, investors in India often must build businesses and expand capacity to serve a growing domestic market, he said.
“In a developed market, you might be buying existing businesses or real estate. Here, you have to be a builder,” Gray said.
What Blackstone said about its investments
Real estate remains a key part of Blackstone’s India portfolio, with existing investments in logistics, hotels and shopping centres performing well, Gray said. Currently, the firm is also looking at opportunities linked to artificial intelligence (AI), including data centres, cloud infrastructure and computing capacity.
Financial services, healthcare, travel and manufacturing are other sectors being considered as the middle class expands and businesses and consumers seek more services.
Gray said the firm’s investment approach would remain focused on identifying businesses with strong management teams and helping them expand.
Why Blackstone remains bullish on India
Gray said India’s growth prospects, workforce, technology capabilities and infrastructure development underpin the firm’s long-term investment case.
Asked whether he believed the next century would belong to India, he replied, “Yeah, we do”.
He pointed to India’s GDP per capita of about $3,000, roughly one-thirtieth of the US level, as an indication of the country’s potential for further economic expansion.
Grey also pointed to India’s capital markets as an important advantage for private equity investors, allowing them to take portfolio companies public and unlock returns.
Blackstone has completed 14 IPOs in India over time, he said, adding that the firm sponsored five of the country’s six publicly listed real estate investment trusts (REITs).
“I’m not sure Indians recognise how powerful and valuable their capital markets are. They’ve become an incredible asset to the country,” Gray said.
The planned increase to $100 billion reflects that long-term approach, with Blackstone looking to invest across sectors that could benefit from India’s expanding economy and growing demand for goods, services and infrastructure.