Blackstone Pivots to Majority Stakes in India Markets

The private equity firm Blackstone has pivoted its investment strategy in India, moving from a limited presence to acquiring majority or equal-control stakes in information technology services, domestic manufacturing, and commercial real estate. This shift has transformed India into the firm's strongest global market for private equity returns.

Blackstone executive Gray noted that the firm previously struggled to make the numbers work and lacked a defined strategy, but believes India is now approaching a growth tipping point. This optimism aligns with India's ascent to the world's fourth-largest economy, boasting a GDP of $3.69 trillion. Former Infosys Ltd. CFO Mohandas Pai attributed India's global competitiveness in technology to its deep talent pool.

Despite the positive trajectory, Gray identified several risks that could hinder progress. These include potential disagreements over tariffs between the United States and India, as well as rising energy costs stemming from the U.S. war with Iran.