New Delhi, Oct 8 (NationPress) India's capital markets have remarkably overcome global economic challenges, achieving exceptional growth in the last two years, according to a recent report released on Wednesday.

The performance of the domestic equity market during this timeframe has solidified India's status as one of the most appealing opportunities for both investors and international banks.

"India’s equity and fixed-income markets have experienced unparalleled growth, fueled by a surge in retail investor engagement, strong institutional backing, and significant policy reforms," stated Crisil Coalition Greenwich in its findings.

In addition, the Indian private credit sector has seen rapid expansion, with alternative lenders stepping in to address the void left by traditional banks.

The private credit market has reported a remarkable surge in deal volumes, achieving a total of $8.5 billion in private credit transactions for FY23–24. This positive trend is expected to persist as this market enters a new phase of expansion, driven by increasing investor confidence and a growing range of active credit funds.

India-focused private debt funds have shown extraordinary performance, with assets under management skyrocketing from $0.7 billion in 2010 to $17.8 billion in 2023, significantly outpacing the growth rates of both venture capital and public equity funds in the nation, the report emphasized.

“India's markets have attained a distinctive equilibrium among retail, domestic institutional, and foreign investors, enhancing market stability and making it an appealing destination for global investors,” remarked Gaurav Arora, Global Head of Competitor Analytics at Crisil Coalition Greenwich.

The country offers a compelling growth narrative for banks, as India's capital markets provide a unique opportunity for both expansion and revenue growth, he continued.

The report indicates that the country's financial landscape has matured to the extent that it is no longer perceived as merely an "emerging play" by banks; rather, it is now regarded as a core strategic market, presenting expanding revenue pools and significant growth prospects.

Moreover, the capital markets have undergone a significant transformation, resulting in a substantial increase in the revenue pool for financial services.

"The investment banking fee pool has seen remarkable growth, reaching between $1.2–1.5 billion in 2024, driven by soaring trading commissions and exchange revenues arising from record-breaking volumes," the report noted.

Consequently, the Indian capital markets represent a multi-dimensional opportunity for banks, characterized by a flourishing equity market, an underserved bond and private credit sector poised for disruption, and a high-growth economy generating increasing financing demands, as highlighted in the report.