Overseas investors’ holdings of Indian stocks and bonds have picked up, rising more than $8 billion in 2017. “India’s current account deficit is being financed in large part by foreign direct investment inflows,” said Shilan Shah, Singapore-based economist at Capital Economics. “This is a positive reflection of Prime Minister Modi’s policies to encourage direct investment, and should make India less vulnerable to shifts in global risk appetite.”
“We expect reforms in the FDI space to continue which, along with the focus on improving ease of doing business conditions and GST implementation should help to sustain the positive momentum in the period ahead,” said Kaushik Das, Mumbai-based senior economist at Deutsche Bank.
Investors are attracted to India’s growth potential and the rupee, which is forecast to earn investors 2.6% by March 2018—including interest—the second-best in Asia after Indonesia’s rupiah, reports Livemint.
“We believe this is testament to India’s high growth rate, large potential and ongoing economic reforms,” said Sonal Varma, Singapore-based chief India economist at Nomura Holdings Inc.,
“We expect this trend to continue.” Bloomberg
Last updated: December 26th, 2025
