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India’s Alternative Investment Market Could Exceed $2 Trillion by 2034
A report by EY and Julius Baer says India’s alternative investment market could become much larger.
It estimates the market is worth about $400 billion today.
The report says it could grow to more than $2 trillion by 2034.
Alternative investments include private funds, private companies and other assets outside regular stock markets.
Wealthy Indian families are putting more money into these investments.
They are investing through funds, directly in companies and alongside professional investors.
They are also looking at areas such as artificial intelligence, renewable energy, semiconductors and data centres.
This growth could provide more money for private businesses and new industries.
However, family offices will need stronger governance, compliance and risk-management systems as their investments become more complex.
India’s alternative investment market is estimated at about $400 billion and could exceed $2 trillion by 2034.
Securities and Exchange Board of India-registered Alternative Investment Funds account for approximately $156 billion of current assets.
Indian family offices are increasingly investing in private equity and venture capital funds, co-investments and direct deals.
Investment interest is expanding into artificial intelligence, climate technology, renewable energy, semiconductors and digital infrastructure.
The number of Indian family offices rose from around 45 in 2018 to nearly 300 by 2024-25, according to the report.
- Who
- EY and Julius Baer produced the report, which examines Indian family offices, wealthy families and high-net-worth investors.
- What
- India’s alternative investment market is projected to grow more than five-fold to over $2 trillion by 2034.
- Where
- India’s alternative investment ecosystem, including domestic and offshore vehicles, family offices and unlisted structures.
- When
- The report was published on August 22, 2026, and its projection extends to 2034.
- Why
- Rising wealth, greater participation by high-net-worth investors, policy support and demand for higher-yielding assets that are less correlated with public markets are expected to drive growth.
Growth Opportunities
Governance Risks
More private-market capital
Growth Opportunities
The report says expanding family-office participation could provide long-term funding for private businesses, emerging ventures and digital infrastructure.
Governance Risks
Rapid capital deployment into less-liquid and complex assets could test whether governance, transparency and risk-management systems can keep pace.
Institutionalisation of family offices
Growth Opportunities
Family offices are adopting investment committees, professional management teams, specialised talent and data-led decision-making to operate more like institutional investors.
Governance Risks
India lacks a dedicated regulatory framework for family offices, which currently operate through existing securities, corporate and trust-law structures.
Broader investment strategies
Growth Opportunities
Direct investments, co-investments and exposure to sectors such as artificial intelligence, renewable energy and semiconductors could increase access to emerging opportunities.
Governance Risks
Alternative investments can involve high risk, limited liquidity, long lock-in periods and valuation risks, according to the report’s disclaimer.
Key facts
- Current market size
- About $400 billion
- Projected market size
- More than $2 trillion by 2034
- SEBI-registered AIF assets
- Approximately $156 billion
- Ultra-high-net-worth individuals
- More than 19,000 currently; projected to exceed 25,000 by 2031
- Indian family offices
- Nearly 300 in 2024-25, compared with around 45 in 2018
- Family-office allocation
- Around 40%-45% of allocations at many family offices are directed to alternative assets
- Major investment areas
- Artificial intelligence, climate technology, renewable energy, digital infrastructure, energy storage, semiconductors, electronics manufacturing, cloud services, data centres and real estate
Quotes
EY-Julius Baer report
A joint report by EY and Julius Baer on India’s alternative investment market
“Family offices have emerged as one of the most transformative forces shaping India's private capital ecosystem.”
thehindubusinessline.com
Sources
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