According to Bank of Baroda, India is expected to draw in $20-25 billion in foreign portfolio investments (FPI) during the fiscal year 2025, with a recent dip considered a temporary setback.

A report by Bank of Baroda predicts that foreign portfolio investment (FPI) inflows into India will remain positive in FY25, with an expected inflow of USD 20-25 billion. Despite recent outflows, the report believes this is a temporary trend and that FPI flows will reverse due to India’s strong macroeconomic fundamentals. The report attributes the recent outflows to a knee-jerk reaction to global developments, such as the recalibration of expectations surrounding the US Federal Reserve’s rate cut cycle and political uncertainties. However, it believes these outflows will reverse as markets gain clarity on US policies. India’s robust economic growth prospects, with estimated GDP growth above 7%, make it an attractive destination for foreign investors seeking higher returns. The positive outlook for FPI inflows also bodes well for the Indian Rupee and financial markets, making India well-positioned to benefit from foreign investment in the coming fiscal year.

Source: https://www.zeebiz.com/economy-infra/news-stock-market-investment-reserve-bank-of-india-likely-to-attract-usd-20-25-billion-fpi-inflows-in-financial-year-2025-bank-of-baroda-326696