IBEF: May, 2014
New Delhi: Foreign investment inflows are expected to more than double to US$ 60 billion level this fiscal, as per an industry study. The net foreign investment inflows, led by aggressive foreign institutional investors (FIIs) in the Indian equity and debt markets, are also expected to cross the US$ 46.17 billion during fiscal 2012–13, one of the best years for overseas investment inflows.
“Riding on huge expectations from the incoming Modi government, global investors are gung ho on the Indian economy, which is expected to witness over 100 per cent increase in foreign investment inflows — both FDI and FIIs — to above US$ 60 billion in the current financial year against US$ 29 billion during 2013-14,” the study projected.
In the current fiscal, FII investment is expected to remain more than the foreign direct investment (FDI) inflows, as per the study. Expectations are that FII investment in both debt and equity markets could exceed US$ 35 billion while FDI could be above US$ 25 billion.
More importantly, India will continue to outperform all other emerging economies with regard to FII inflows, highlighted the study. Furthermore, as the new government goes about removing the obstacles in investment, FDI will likely pick up again in the major infrastructure areas of ports, airports, roads and energy, according to the study.