Blackstone Plans $2 Billion Annual Investment in India, Calls for Regulatory Reforms

Global private equity giant Blackstone Group has expressed confidence in investing $2 billion annually in India, aiming to further solidify its presence in the country's burgeoning market. Speaking to reporters in Mumbai, Blackstone's chief operating officer Jonathan D Gray emphasized the need for various reforms to streamline the ease of doing business for firms like theirs in India. Blackstone plans to inject $2 billion into the Indian market each year, showcasing its long-term commitment to the country's economic growth and investment potential.

Having already poured $50 billion into India, Blackstone has amassed assets valued at $30 billion. This substantial investment underscores the company's confidence in India's market prospects. Blackstone's investment team, comprising 75 professionals based in Mumbai, actively seeks opportunities across diverse sectors in India. Over the next five years, the company anticipates a $25 billion surge in asset value, including fresh investments and value creation within existing portfolio companies.

Gray highlighted several areas for improvement, including expediting merger and acquisition approvals, facilitating easier privatization of listed companies, and enhancing dispute resolution mechanisms in commercial matters. Gray noted the significant time lag in M&A deal approvals in India compared to the US market, citing a two-year duration in India versus weeks in the US. Additionally, regulations requiring approval from over 90% of shareholders for privatization deals pose challenges.

Blackstone aims to diversify its portfolio in India, targeting sectors such as infrastructure, real estate, logistics, data centers, and healthcare. The company sees tremendous potential in leveraging India's economic momentum and growing middle-class consumer base. Gray suggested reforms such as allowing public funds to invest in real estate investment trusts (REITs) to further catalyze investment inflows into the country.

Blackstone's commitment to investing $2 billion annually underscores its confidence in India's economic growth trajectory. However, streamlining regulatory processes and implementing investor-friendly reforms will be crucial to unlocking the full potential of India's market and attracting more capital inflows. By advocating for these reforms, Blackstone aims to contribute to India's economic development while maximizing returns for its investors in the long run.