Key Takeaways
- • The Indian Venture and Alternate Capital Association (IVCA) met with Finance Minister Nirmala Sitharaman to outline a strategic roadmap to scale India's alternatives industry to Rs 100 lakh crore by 2036, representing a multi-fold expansion from current levels.
- • Key policy priorities discussed include LLP reforms for alternative investment funds (AIFs), increased institutional participation from pension regulators (PFRDA), and establishment of the Research Development and Innovation Fund (RDIF) to catalyze long-term capital formation.
- • The industry emphasizes the critical need for patient, long-duration capital pools targeting infrastructure, manufacturing, energy transition, and private credit sectors as India accelerates its development agenda.
- • AIF commitments have grown from Rs 0.84 lakh crore in 2017 to Rs 13.49 lakh crore in 2025, demonstrating sector momentum but signaling substantially larger capital mobilization is required to reach 2036 targets.
- • Focus areas include encouraging sustained foreign institutional capital inflows while simultaneously expanding domestic institutional participation from pension funds and insurance bodies to reduce reliance on external capital sources.
Summary
The Indian Venture and Alternate Capital Association held formal discussions with Finance Minister Nirmala Sitharaman centered on structural measures needed to scale the country's alternatives ecosystem. The meeting reflects government-industry alignment on leveraging alternative capital mechanisms to finance India's long-term infrastructure, manufacturing, and innovation-driven growth objectives.
Industry leaders articulated an ambitious target of Rs 100 lakh crore in assets under management across alternative investment categories by 2036. Srini Sriniwasan, Managing Director at Kotak Alternate Asset Managers, emphasized that this scaling depends fundamentally on establishing robust long-duration capital pools—a structural requirement for patient capital deployment in infrastructure and energy-transition projects. The discussions acknowledged government openness to ongoing dialogue on capital formation mechanisms, signaling receptiveness to industry recommendations on regulatory frameworks.
Policy measures emerging from the engagement include proposed limited liability partnership (LLP) reforms specifically designed to streamline alternative investment fund structuring, and regulatory initiatives to increase institutional investor participation through bodies like the Pension Fund Regulatory and Development Authority (PFRDA). Gotak Capital Managing Partner Gopal Jain highlighted the operational establishment of the Research Development and Innovation Fund (RDIF), a government-backed mechanism intended to channel capital toward innovation-led sectors. These initiatives represent targeted attempts to broaden the institutional capital base supporting India's venture capital and private equity ecosystem.
Recent data demonstrates sector traction: committed capital to AIFs expanded significantly from Rs 0.84 lakh crore in 2017 to Rs 13.49 lakh crore in 2025, validating market interest but underscoring the substantial incremental capital mobilization still required. Industry discussions focused on dual capital sourcing strategies—encouraging long-term foreign institutional inflows while simultaneously deepening domestic institutional participation through pension funds and insurance vehicles. This dual approach aims to create sustainable, diversified funding sources insulating India's alternatives sector from single-source capital concentration risks and supporting continued entrepreneurship and infrastructure-led economic expansion.
Industry leaders articulated an ambitious target of Rs 100 lakh crore in assets under management across alternative investment categories by 2036. Srini Sriniwasan, Managing Director at Kotak Alternate Asset Managers, emphasized that this scaling depends fundamentally on establishing robust long-duration capital pools—a structural requirement for patient capital deployment in infrastructure and energy-transition projects. The discussions acknowledged government openness to ongoing dialogue on capital formation mechanisms, signaling receptiveness to industry recommendations on regulatory frameworks.
Policy measures emerging from the engagement include proposed limited liability partnership (LLP) reforms specifically designed to streamline alternative investment fund structuring, and regulatory initiatives to increase institutional investor participation through bodies like the Pension Fund Regulatory and Development Authority (PFRDA). Gotak Capital Managing Partner Gopal Jain highlighted the operational establishment of the Research Development and Innovation Fund (RDIF), a government-backed mechanism intended to channel capital toward innovation-led sectors. These initiatives represent targeted attempts to broaden the institutional capital base supporting India's venture capital and private equity ecosystem.
Recent data demonstrates sector traction: committed capital to AIFs expanded significantly from Rs 0.84 lakh crore in 2017 to Rs 13.49 lakh crore in 2025, validating market interest but underscoring the substantial incremental capital mobilization still required. Industry discussions focused on dual capital sourcing strategies—encouraging long-term foreign institutional inflows while simultaneously deepening domestic institutional participation through pension funds and insurance vehicles. This dual approach aims to create sustainable, diversified funding sources insulating India's alternatives sector from single-source capital concentration risks and supporting continued entrepreneurship and infrastructure-led economic expansion.
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