New Delhi, Sept. 6 -- India's private credit market is likely to remain on a growth trajectory over the next one to two years, even as competition among lenders intensifies, with domestic funds increasingly expected to drive deployment and target larger transactions, according to a research report by EY.

The shift is already visible in the first half of 2026. Private credit deals tracked by EY totalled US$3.5 billion in H1 2026, marginally higher than US$3.4 billion in the second half of 2025. Domestic private credit players accounted for 74 per cent of total deal value and around 79 per cent of deal count, significantly strengthening their position against global funds.

EY said domestic funds are benefiting from their local presence an...