|| Five Reasons For Gusher Of Foreign Investment Flows Into India ||
Recent macro data has brought in a gusher of foreign flows, but liquidity is also at play
Foreign investors seem to be taking a rather more sanguine view of Indias economic prospects than domestic institutions and the commentariat. At least thats the inference one draws from unabated inflows from foreign portfolio investors and direct investors in the post-Covid period. Government data show that Foreign Direct Investment (FDI) in July-September 2020, at $28 billion, was double the same period last year. If one considers the last six months to smooth out flows and looks at only incremental equity investments, FDI into India at $30 billion has still seen a 15 per cent increase. Net investments by Foreign Portfolio Investors (FPIs) in Indian equities, after faltering a bit in September, have turned into a gusher with inflows of 1.56-lakh crore this fiscal, including record in November . While strong inflows are definitely desirable at a time when Indias capex cycle needs a fresh start, their sustainability cannot be taken for granted.
https://www.thehindubusinessline.com/opinion/editorial/recent-macro-data-has-brought-in-a-gusher-of-foreign-flows-but-liquidity-is-also-at-play/article33214790.ece
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|| Five Reasons For Gusher Of Foreign Investment Flows Into India || Recent macro data has brought in a gusher of foreign flows, but liquidity is also at play Foreign investors seem to be taking a rather more sanguine view of Indias economic prospects than domestic institutions and the commentariat. At least thats the inference one draws from unabated inflows from foreign portfolio investors and direct investors in the post-Covid period. Government data show that Foreign Direct Investment (FDI) in July-September 2020, at $28 billion, was double the same period last year. If one considers the last six months to smooth out flows and looks at only incremental equity investments, FDI into India at $30 billion has still seen a 15 per cent increase. Net investments by Foreign Portfolio Investors (FPIs) in Indian equities, after faltering a bit in September, have turned into a gusher with inflows of 1.56-lakh crore this fiscal, including record in November . While strong inflows are definitely desirable at a time when Indias capex cycle needs a fresh start, their sustainability cannot be taken for granted. https://www.thehindubusinessline.com/opinion/editorial/recent-macro-data-has-brought-in-a-gusher-of-foreign-flows-but-liquidity-is-also-at-play/article33214790.ece