Expert Comment on FPI Trend by Manoj Purohit, Partner and leader - FS Tax, Tax and Regulatory Services, BDO India
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Below the Expert Comment on FPI Trend by Manoj Purohit, Partner and leader - FS Tax, Tax and Regulatory Services, BDO India
“Post the election results and settling down on the political front, India is back on the radar showcasing its strong fundamentals and long-term growth story. FPIs did react to the election results, resulting in substantial selling pressure with the decision to exit. However, post the final results, the investor fraternity is now back in action to look at India as a preferred jurisdiction as compared to other markets.
The primary factors that can be attributed to instilling such a belief are positive GDP numbers, the government’s consistent policy reforms to make India a conducive place to invest, and recent announcements of interest rate cuts by the European Central Bank making room for substantial investment opportunities.
Given recent announcements made by SEBI permitting NRIs, OCIs, and even RIs to invest up to 100% in FPIs based out of IFSC is a clear indication of the intention to create a compatible platform for foreign investors to give better returns on investments and with ease of doing business and compliances.
“FPIs in India will continue to grow under stable government regime, conducive environment backed by inflation control, fiscal prudence and far-sighted vision for India to a make a global hub for capital markets.”
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