Economic Times has now reported that post the meeting, foreign portfolio investments into India have dramatically risen in the last 10 days and over Rs 30,000 crore has been pumped into India by investors.
Massive Investor Confidence in India
While the entire month of October saw FPIs invested to the tune of Rs 21,826 crore, since the meeting itself, these investors have pumped in close to Rs 30,200 crore.
In November so far, FPIs have invested Rs 32,777 crore in domestic stocks, driving the Sensex and Nifty to record highs recently.
Since November 5, the average daily purchases by FPIs of Indian stocks have gone up to Rs 4,300 crore as against Rs 900 crore in October.
Impact of Game-Changing Reforms Initiated
The article also quoted an official as saying the global investors had appreciated the reforms undertaken in agriculture and labour markets and appreciated the opportunities India offered.
Union government led by PM Modi has recently undertaken landmark reforms in labour and agricultural markets as well as several other initiatives like the formation of land banks, single-window clearance, announcement of focused job-creating economic stimulus and expansion of production linked incentive schemes which have boosted the image of India as a global investment destination and led to a dramatic increase in FPI inflows.
Consistent high inflows
This increased inflow of FPI is not a one-time phenomenon with Hindu Business Line reporting that Inflows into Indian capital market in 8 months of FY20-21 have already crossed ₹1.25 lakh crore and added that if the patterns hold it would cross over ₹1.4 lakh crore for the entire financial year.
It added that bolstered by the slew of reforms to spur economic growth and a better-than-expected earnings season, foreign portfolio investors (FPIs) are pumping record investments into India’s capital market.
As PM Modi said at the Global Investors Conference, New India which is being built offers the investors Democracy, Demography, Demand as well as Diversity. He also said India is the place to be if one wants returns with reliability, demand with democracy, stability with sustainability, and growth with a green approach.
As these increased FPI inflows show, the global investor community seems to have heard the pro-growth and development message of PM Modi and the Indian government loud and clear.