Goldman Sachs is making a decisive bet on India, investing $500 million over the past three years to expand its footprint in the country’s booming financial markets. The strategy aims to increase the firm’s presence in equity offerings and mergers, where it has recently climbed the rankings amid stiff competition from established global and domestic rivals.
The initiative gained momentum during a rare global board meeting at New Delhi’s Taj Mahal Hotel, where Goldman India head Sonjoy Chatterjee argued that India should no longer be viewed merely as a future growth market. With inflation stabilizing, banks reducing bad loans, and corporate balance sheets stronger than in decades, Chatterjee persuaded the board including CEO David Solomon to shift focus and commit significant resources to India.
Since then, Goldman has deployed $500 million into its Indian banking operations, signaling a long-term commitment to one of the world’s fastest-growing economies. The move has yielded tangible results, the bank rose to fourth place in Indian equity offerings last year and ranked fifth in mergers, surpassing Morgan Stanley in stock sales for the first time in a decade.
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Competing in a Crowded Investment-Banking Market
Despite these gains, Goldman faces formidable competition. JPMorgan Chase, Citigroup, and domestic banks like Kotak Mahindra and Axis Bank maintain deep client relationships and significant pricing power. Still, Goldman sees continued growth potential as India’s IPO market accelerates. Nearly 138 companies have regulatory approval for offerings, with 68 more awaiting clearance, while Indian firms raised a record $22 billion last year, making the country one of the busiest IPO markets globally.
Goldman’s shift is also reflected in its Mumbai office relocation. Its banking team moved from a modest three-storey building in the city’s aging textile mill district to the top floors of a modern glass-and-steel tower in Worli, joining its Bengaluru tech hub, which has employed thousands for more than two decades. The firm now seeks to expand across equity underwriting, mergers, private credit, and structured finance rather than relying on a single stronghold.
A Strategic Approach Beyond Fees
“You can’t approach India with a narrow, fee-driven investment-banking mindset,” Chatterjee said. He emphasizes that success depends on leveraging investment banking as an entry point into a broader suite of financial services. Historically, Goldman had lagged behind rivals in equity underwriting and domestic mergers, often avoiding fee-sensitive mandates and government-linked deals. This cautious approach left the firm sidelined in marquee transactions, including IPOs for Hyundai Motor India and Tata Capital, as well as major stake sales by Reliance Industries Ltd.
Now, Goldman is competing aggressively. The bank helped sell more than $4 billion of stock last year across 23 transactions, including notable mandates like ITC Ltd.’s $1.5 billion block sale to British American Tobacco, HDB Financial Services’ IPO, and Tata Motors’ acquisition of Iveco Group NV.
Riding Structural Market Changes
Goldman’s growth in India is supported by regulatory reforms since 2021, including higher foreign-investment limits, streamlined IPO approvals, accelerated mergers, and expanded access to corporate debt for overseas investors. Domestic mutual funds have bolstered equity issuance, even amid market volatility. For Goldman and other banks, equity capital markets often serve as a gateway to other deals such as credit, structured financing, mergers, and pre-IPO funding.
The bank has also emerged as a key player in India’s private-credit sector. One recent deal included $600 million for Jubilant Bhartia Group to finance its acquisition of a stake in Hindustan Coca-Cola Beverages. Since 2006, Goldman’s alternatives business has invested over $8.5 billion in India across private equity and other asset classes.
Expanding Talent and Operations
Goldman has restructured leadership to support its India strategy. Chatterjee’s role has been elevated, and co-heads Devarajan Nambakam and Sudarshan Ramakrishnan have received longer tenures. Sunil Khaitan joined from Bank of America to lead equity capital markets and financing, while six managing directors were promoted in Mumbai last year the largest class ever in India.
Meanwhile, Goldman’s technology center has grown to about 8,000 employees from just 300 two decades ago, making India the largest staff base outside the United States.
Chatterjee, who joined Goldman from ICICI Bank 15 years ago, remains hands-on with his team, even participating in yoga sessions at the Mumbai office. Despite the rapid expansion, he remains committed to the firm’s long-term strategy in India.
“We may not always be the first mover, but when we see durable tailwinds forming across an economy whether in growth, capital markets, or policy we are prepared to commit fully,” Chatterjee said.