India remains attractive destination for global capital: Experts
New Delhi: With a strong economic outlook, policy reforms and resilient markets, India remains an attractive destination for global capital, experts said on Saturday. The reciprocal tariffs recently imposed by the US administration on Indian goods remain relatively modest compared to other Asian countries, which will continue to give India a competitive edge.
Manoj Purohit, Partner and Leader, FS Tax, Tax and Regulatory Services, BDO India, said, “This opens up a strong proposition for the country to offer export opportunities. India remains one of the fastest growing economies, with a huge consumer market, skilled workforce and a government committed to pushing forward business-friendly reforms.” The government’s continued focus on infrastructure, digital development and ease of doing business remains key to boosting investor confidence.
The recent move by RBI to keep the existing corporate bond and G-Sec limits for foreign portfolio investors (FPIs) unchanged opens the door for offshore participants to continue to invest funds in the Indian market. Additionally, business diversification and strategic partnerships are opening up new avenues for ‘investment’.
While tariffs may pose short-term challenges, India’s strong economic fundamentals ensure that foreign investors will continue to consider India a key destination for long-term investment even if risk aversion persists. “The Indian economy is currently well-insulated to survive temporary headwinds due to macro changes and domestic triggers of high valuations, tight incomes and rising inflation costs,” Purohit said.
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Market participants will closely monitor the long-term impact of the proposed tariffs and upcoming announcements from RBI’s monetary policy stance in anticipation of a possible rate cut to formulate investment strategies for the upcoming cycle. The week ahead is crucial, with key domestic and global triggers.
With tariff tensions rising, global investors will be closely watching any further developments on this front, said Ajit Mishra, Senior Vice President (Research), Religare Broking. Domestically, the focus will be on the outcome of the Monetary Policy Committee (MPC) meeting on April 9, followed by key macroeconomic indicators IIP and CPI data on April 11. Apart from this, the fourth quarter earnings season is starting, after which IT giant TCS will announce its results on April 10.
