FPI Community To Play Key Role In Placing India As Third Largest Economy

Market experts stated on Saturday that as India enters “Amritkaal,” the FPI community would play a significant role in placing it as the third largest economy in the world. Net foreign portfolio investor (FPI) inflows turned positive this month, both in the stock and debt segment.

In FY24, there was a net inflow of Rs 2,82,338 crore for debt and equity combined.

Market observers attribute the swift recovery in the capital markets to favorable attitudes, a stable government’s guarantee of continued reforms, low US Federal Reserve rates, and robust domestic demand.

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“The recent announcements in IFSC Gift City for wide participation for foreign and Indian investors has also diverted the international players to allocate a substantial portion of their global portfolio to India markets,” said Manoj Purohit, Partner and leader, FS Tax, Tax and Regulatory Services, BDO India.

FPIs invested a total of Rs 6,304 crore in debt during the first week of this month, compared to Rs 7,962 crore in equities.

“As India enters ‘Amritkaal’, the FPI community will play a major role for the nation to position as the third-largest economy in the world,” said Purohit.