India’s Capital Market Liquidity Now Second Only to US, Says Blackstone President
Blackstone President Jonathan Gray claims India's capital market liquidity is now likely second only to the US due to regulatory and infra improvements.
In a major testament to the rapid evolution of the nation's financial landscape, Blackstone President and Chief Operating Officer Jonathan Gray has stated that India’s capital market liquidity is probably second only to that of the United States. Speaking at the Bloomberg New Economy 2026 forum, Gray highlighted how a combination of regulatory shifts, superior infrastructure, and a newfound openness to international capital has propelled India into a global heavyweight.
A Two-Decade Transformation
Reflecting on the dramatic shift in the investment climate, Gray noted that the progress seen over the last twenty years is nothing short of remarkable. He pointed out that two decades ago, many sectors in India were largely inaccessible to international players.
“20 years ago, most industries, we couldn’t even invest in and what’s happened as a result of that is a real acceleration in growth,” Gray remarked, emphasizing that the government's proactive approach to opening up industries has been a primary driver of this economic surge.
Key Drivers of India's Growth
According to the Blackstone executive, several critical factors have converged to strengthen India's position as a premier destination for global investors:
- Regulatory Reforms: Significant changes in capital market rules have streamlined processes and increased transparency.
- Infrastructure Development: Improvements in both physical infrastructure and dispute resolution mechanisms have provided much-needed stability.
- Foreign Investment Policy: A welcoming stance toward international capital has allowed more companies to list domestically and attracted massive inflows.
The Role of AI and Future Investment Frontiers
Beyond traditional markets, Gray delved into the transformative power of technology. He identified Artificial Intelligence (AI) and superintelligence as the defining forces of the current era, capable of reshaping how consumers, businesses, and governments operate.
As AI begins to move from digital realms into physical applications, Gray revealed that Blackstone intends to focus its strategic attention on several key sectors:
- Electricity and energy requirements (driven by autonomous vehicles and robotics)
- Digital infrastructure
- Defence
- Life sciences
Global Economic Context
Gray’s insights were shared during a high-level panel titled ‘The End of Predictability,’ which also featured Tata Sons Chairman Natarajan Chandrasekaran and former UK Prime Minister Rishi Sunak. The discussion covered a wide array of global risks, including geopolitical tensions, government debt, and technological disruption.
Addressing the challenges faced by nations with fiscal constraints, Gray suggested that governments can bolster their growth by simplifying rules, providing greater regulatory clarity, and implementing more reasonable tax policies to facilitate the entry of foreign capital.