Blackstone President Jon Gray has said India is getting “closer and closer” to a point where its economic growth could accelerate further, highlighting improvements in the country’s infrastructure and investment environment.

Speaking to Bloomberg Television’s Wall Street Week, Gray said India’s large and educated population remains an important part of the country’s investment appeal. He also argued that infrastructure constraints had historically limited India’s growth.

According to Gray, those constraints extended beyond physical infrastructure to include legal and capital-market systems. He credited Prime Minister Narendra Modi’s administration with making significant improvements in these areas, describing its efforts as a “phenomenal job.”

Gray also discussed Blackstone’s own experience in India. The firm initially entered the market with a small team and struggled to establish a clear investment strategy, particularly during the global financial crisis. It later shifted towards majority or equal-control investments and focused on sectors including IT services, commercial real estate and domestic manufacturing.

Gray said India has since generated Blackstone’s highest private-equity returns globally. He nevertheless acknowledged continuing challenges, including US-India trade tensions and higher energy costs, saying there would be “bumps” along the way.