Foreign portfolio investments (FPIs) in India have reached ₹3,39,066 crore for the fiscal year 2023-24, highlighting the resilience and appeal of the country's financial landscape. In the current fiscal year, FPIs have invested ₹1,71,248 crore year-to-date, according to government data.
As per data from the National Securities Depository Limited (NSDL), foreign portfolio investors injected ₹48,822 crore into Indian equities this month as of September 26, buoyed by a recent US Federal Reserve rate cut.
India's thriving initial public offering (IPO) market further underscores its economic strength, with multinational corporations like Hyundai and LG choosing to list in the country, as reported by the Ministry of Information and Broadcasting.
The number of IPOs surged by 66% in FY24, rising from 164 in FY23 to 272, while the total amount raised increased by 24%, from ₹54,773 crore to ₹67,995 crore during the same period.
The Reserve Bank of India (RBI) has indicated that September is poised to be the busiest month for IPOs in 14 years. This trend marks India's growing significance in the global financial ecosystem, as multinational corporations increasingly seek partnerships with local firms rather than pursuing outright buyouts, recognising the strategic advantages of collaboration within India's unique business environment.
“This trend reflects India’s evolution from being merely a market to a pivotal partner in shaping global business strategies, further cementing its role on the international stage,” the ministry stated.
Jamie Dimon, CEO of JPMorgan, recently asserted that India is poised for continuous growth over the next 30 years due to its demographic advantages and strategic positioning in the global economy. He noted that India's growth potential is intricately linked to its liquidity and valuation dynamics.
As the world's fourth-largest stock market, India has seen daily average cash trading levels triple from pre-COVID levels. Despite a recent slowdown in foreign portfolio inflows, India’s high-yielding markets and robust growth potential continue to attract significant interest.
According to Kevin Foley, JPMorgan's global head of capital markets, the retail sector’s buying spree, driven by high liquidity, is expected to invite further foreign investments.
The report emphasised that with a youthful population, a thriving digital economy, and an expanding manufacturing base, India is harnessing its demographic dividend and embracing innovation to drive sustainable economic development.
The country’s diverse capabilities span multiple industries, including services, manufacturing, and technology, presenting vast opportunities for growth.
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