Private Credit: Healthcare & Domestic Capital Expansion

According to the EY Private Credit Report H1 2026, India's private credit market demonstrated steady momentum with total deployments reaching ₹33,299 crore ($3.50 billion) across more than 100 transactions valued above ₹88.37 crore ($10 million)—holding stable against the ₹30,045.8 crore ($3.40 billion) recorded in H2 2025. Healthcare emerged as the second-largest deployment sector, capturing 13% of total deal value, trailing only real estate and ahead of food and beverage. This positioning was bolstered by investor appetite for defensive characteristics, predictable cash flows, and scalable platforms. Domestic funds dominated the landscape, contributing 74% of total deal value and nearly 79% of deal volume, while mid-sized transactions between ₹88.37 crore ($10 million) and ₹530.22 crore ($60 million) expanded their market share to 61% of total deployment value (up from 51% in H2 2025). The market’s expansion is being anchored by strong demand for structured capital across refinancing, holding company funding, and acquisition financing, despite broader global macroeconomic headwinds. Domestic fund managers are increasingly capitalizing on special situations and mid-market opportunities, supported by a strengthening regulatory architecture and greater borrower acceptance of alternative credit solutions. Over the next two to three years, the Indian private credit landscape is projected to sustain momentum across growth capital, M&A, and special situations, with infrastructure and other asset-heavy industries expected to join real estate and healthcare as key destinations for structured private debt.