Foreign portfolio investors (FPIs) have invested Rs 82,575 crore so far in 2019 in India. It is the highest amount that FPIs have pumped into the country since the beginning of Modi government in May 2014, a sign that the Modi administration has convincingly won the trust of bulge-bracket overseas funds. FPI investment into India in 2019 so far is the second-highest among all the emerging markets, next only to China.
These inflows into India have come on the back of qualified institutional placements (QIPs) and offer for sale (OFS) launched by Indian companies, especially from top insurance companies, corporate tax cuts announced in September and a stronger rupee said experts. Further, the unrest in Hong Kong has also increased attractiveness of Indian-listed assets. In 2014, FPIs had infused Rs 97,350 crore into India.
Worth mentioning on September 20, government announced a cut in basic corporate tax rate to 25% from 35%, while tax for new manufacturing companies was whittled down to 15% from 25%. After rollback in September the FPIs’ focused on India. Since September 1, FPIs have invested about Rs 31,000 crore.