AIFs grow at 30% in India over 5 yrs: SEBI Chairman

Alternative Investment Funds (AIFs) have emerged as an important pillar of India’s capital markets and are increasingly playing a key role in financing sectors that strengthen the country’s economic resilience, the Securities and Exchange Board of India (SEBI) Chairman, Tuhin Kanta Pandey, said.

Speaking at an event recently, Pandey said AIFs are no longer on the margins of the financial system but are becoming a crucial channel linking private capital with productive sectors of the economy. “The current geopolitical situation is a reminder that capital must do more than chase returns.

It must also build resilience,” he said, adding that the AIF industry can help finance sectors such as renewables, energy storage, logistics and supply chains that are critical to strengthening India’s economic capacity.

Pandey noted that India now has more than 1,700 registered AIFs, with commitments standing at Rs 15.7 trillion and investments at about Rs 6.4 trillion as of December 2025, reflecting a compound annual growth rate (CAGR) of nearly 30 per cent over the past five years.

According to him, the industry is not only attracting commitments but is also steadily converting them into actual investments that are being deployed in the economy. “With commitments close to Rs 16 trillion, there remains substantial capacity for future deployment.

While AIFs are supporting growth today, they are also creating room for the next wave of entrepreneurship, infrastructure development and enterprise expansion,” Pandey said.

He added that AIFs are increasingly directing capital to areas where traditional finance often does not reach and are helping connect private capital more closely with productive enterprises.