India, April 9 -- Amid an increasingly volatile macroeconomic situation and geopolitical uncertainty, Indian venture investors are leaning towards domestic capital as against the traditional foreign limited partners (LPs).

According to Inc42's 'Indian Investor Ranking & Sentiment Survey' (Q1 2026), about 74% of over 70 institutional investors said that they would prefer Indian-origin LPs in the next funding cycle.

For fund managers navigating an uncertain fundraising environment, a stronger base of domestic LPs is emerging as a key buffer against global disruptions while ensuring capital deployment remains aligned with the realities of the domestic startup ecosystem.

However, investors Inc42 spoke with highlight a deeper trend propelli...