BCG's Mayank Jha says AIFs poised to reshape India's economy
India's Alternative Investment Fund (AIF) sector is set to play a major role in the country's economic future, says Mayank Jha, Managing Director and Partner at Boston Consulting Group (BCG).
Right now, AIFs make up just 6% of India's asset management industry, far less than the global average of 19%, which means there's plenty of room to grow.
AIFs attract ₹17.5L/cr commitments
AIFs have already attracted ₹17.5 lakh crore in commitments, and Jha compared their current stage to where mutual funds were before they boomed.
He emphasized that bringing in more foreign investment and updating policies will be key for India's development goals.
On top of that, he pointed out that artificial intelligence (AI) is another important opportunity for India if approached differently: "This is the kind of commitment of capital on the private side that will be needed and AIF will be a very crucial lever to drive it," said Mayank Jha.