Something remarkable is happening in India's financial sector. Global capital is increasingly finding its way not just into large corporations and infra projects, but also into institutions that finance small shopkeepers, first-time homebuyers and aspiring entrepreneurs. This could be one of the more consequential developments in India's journey towards becoming a developed economy.
Japan's Mitsubishi UFJ Financial Group (MUFG) has invested in Shriram Finance, Abu Dhabi's International Holding Company (IHC) has backed Sammaan Capital, Bain Capital has committed to Manappuram Finance, and Blackstone has agreed to invest ₹5,000 cr in IIFL Finance. These investments reflect growing international confidence in India's specialised lending institutions and potential to deliver sustainable, profitable growth.
