Massive 99% Decline in Foreign Portfolio Investment Inflows to Rs 2026 Crore in 2024

Economy

1 year ago

News sources:

Credited from: INDIATIMES

India's Foreign Portfolio Investment (FPI) inflows dropped sharply by 99% in 2024, falling to Rs 2,026 crore from Rs 1.71 lakh crore in 2023.
The decline is attributed to the strong US economy, which has attracted significant investment into US assets, diverting funds away from emerging markets like India.
Factors such as high valuation, declining GDP growth, and sluggish corporate earnings made Indian markets less appealing to foreign investors.
The RBI's tightened liquidity measures and tighter lending rules have negatively impacted Indian banks, prompting FPIs to sell $35 billion in shares within this sector.
Despite these challenges, FPIs remain optimistic about India’s long-term growth and have shown interest in primary markets, supported by a strong domestic investor presence.