Gaining traction: AIF commitments jump to ₹13.5 trillion in 2025

India's march toward a $6.6-trillion economy is being powered by booming AIF activity, with commitments touching ₹13.49 lakh crore and domestic investors emerging as major contributors

As India aims to become the world’s third-largest economy by 2030, with its GDP projected to grow from $3.9 trillion to $6.6 trillion, private markets, particularly alternative investment funds (AIFs), are playing a vital role in facilitating this growth, according to the DII Report 2025 by IVCA-360 One -Crisil.  As of March 2025, the total AIF commitments reached ₹13.49 trillion, growing at a compound annual growth rate of 31.5 per cent from FY21 to FY25. There are currently over 1,600 AIFs registered. The report noted that the growth of AIFs is driven by investors seeking diversification, increased domestic investor participation, and a supportive regulatory framework.  Category I AIFs invest in startups, early-stage ventures or other sectors with high growth potential. Category II AIFs include funds like private equity funds or debt funds that do not fall under categories I and III. Hedge funds and private investment in public equity fall under the Category III AIFs.