Key Takeaways
- • Blackstone President and COO Jon Gray said at the Bloomberg Economy Forum that liquidity in Indian markets is second only to the United States, with some outlets quoting him as saying "probably second" to the US.
- • Gray said Blackstone has moved several companies to list in India, citing the shift from restrictions that barred foreign investors from most Indian sectors about two decades ago.
- • Japan became India's largest FDI source in Q1 FY27, investing $5.71 billion between April and June 2026, about 29% of total FDI equity inflows of $19.81 billion, according to Business Standard.
- • The RBI's June 5, 2026 measures aimed at drawing foreign capital, which followed significant foreign portfolio outflows from Indian equities, include wider Fully Accessible Route access and broader non-resident access to listed equities.
- • Public listings in India give private equity firms such as Blackstone an important exit route, while also allowing companies to raise capital for expansion.
Summary
Blackstone President and Chief Operating Officer Jon Gray said at the Bloomberg Economy Forum that India's market liquidity is second only to that of the United States. "The liquidity in the Indian market is second only to the United States. We have moved several companies to list in India now. Could you have imagined that 20 years ago?" Gray said. He noted that two decades ago foreign investors faced restrictions that limited their ability to invest in many sectors of the Indian economy. Some outlets quoted him as saying the market is "probably second" to the US, and Gray's comparison reflects his own assessment, since the ranking depends on the liquidity measure and market segment considered.
The remarks underline the growing role of India's capital markets for global private equity. Public listings allow investors to monetise holdings and let companies raise capital for expansion, giving firms like Blackstone an important route to exit investments.
The broader backdrop includes shifting foreign capital flows. According to Business Standard, Japan became India's largest source of foreign direct investment in the first quarter of FY27, contributing $5.71 billion between April and June, which exceeded the $3.74 billion received from Japan in all of FY26. Japanese investments accounted for nearly 29% of India's total FDI equity inflows of $19.81 billion in the quarter, and the surge follows Japan's target to invest 10 trillion yen (about ₹7 lakh crore) in India over more than a decade.
On June 5, 2026, the Reserve Bank of India announced measures to encourage foreign capital inflows. These include expanding the Fully Accessible Route to newly issued government securities with 15-, 30- and 40-year maturities during 2026, broadening access to listed Indian equities for eligible non-resident individuals, and introducing foreign-exchange swap facilities for eligible overseas borrowings and foreign-currency deposits. The RBI also proposed restoring the export proceeds realisation and repatriation period to nine months. The measures came amid significant foreign portfolio investment outflows from Indian equities. Separately, the government granted tax exemptions for eligible foreign portfolio investors in government securities, applicable to income from April 1, 2026.
Gray's remarks also come against a longer liberalisation of India's FDI framework, including the Make in India initiative launched in September 2014 and Production Linked Incentive schemes for 13 sectors announced in the February 2021 Union Budget with an outlay of ₹1.97 lakh crore. Foreign investment decisions, however, depend on returns, economic conditions, currency movements and global investor sentiment as well as liquidity and regulatory access.
The remarks underline the growing role of India's capital markets for global private equity. Public listings allow investors to monetise holdings and let companies raise capital for expansion, giving firms like Blackstone an important route to exit investments.
The broader backdrop includes shifting foreign capital flows. According to Business Standard, Japan became India's largest source of foreign direct investment in the first quarter of FY27, contributing $5.71 billion between April and June, which exceeded the $3.74 billion received from Japan in all of FY26. Japanese investments accounted for nearly 29% of India's total FDI equity inflows of $19.81 billion in the quarter, and the surge follows Japan's target to invest 10 trillion yen (about ₹7 lakh crore) in India over more than a decade.
On June 5, 2026, the Reserve Bank of India announced measures to encourage foreign capital inflows. These include expanding the Fully Accessible Route to newly issued government securities with 15-, 30- and 40-year maturities during 2026, broadening access to listed Indian equities for eligible non-resident individuals, and introducing foreign-exchange swap facilities for eligible overseas borrowings and foreign-currency deposits. The RBI also proposed restoring the export proceeds realisation and repatriation period to nine months. The measures came amid significant foreign portfolio investment outflows from Indian equities. Separately, the government granted tax exemptions for eligible foreign portfolio investors in government securities, applicable to income from April 1, 2026.
Gray's remarks also come against a longer liberalisation of India's FDI framework, including the Make in India initiative launched in September 2014 and Production Linked Incentive schemes for 13 sectors announced in the February 2021 Union Budget with an outlay of ₹1.97 lakh crore. Foreign investment decisions, however, depend on returns, economic conditions, currency movements and global investor sentiment as well as liquidity and regulatory access.
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