New Delhi, Aug. 23 -- India's private credit market is likely to expand further as banks and NBFCs continue to leave funding gaps in specialised segments, but investors are expected to become increasingly selective about collateral quality, contractual protections and their ability to influence insolvency outcomes, according to an EY research report.

The report said that recent changes to the Insolvency and Bankruptcy Code (IBC) could shift private credit strategies away from relying primarily on security towards stronger documentation, structural protections and voting influence.

India's private credit market remains relatively small at an estimated $25-30 billion as of March 2025, compared with around $1.4 trillion in the US. However,...