PM Modi meet Joe Biden as Global Investment flocks to India
Ira Singh
24 June’23
Prime Minister Narendra Modi embarked on a significant visit to the United States, culminating in a highly anticipated meeting with President Joe Biden. The meeting comes as global investors continue to flock to India, recognizing the country’s economic potential and the government’s ongoing efforts towards reform and development. The discussions between the two leaders aim to bolster bilateral ties and explore avenues for increased collaboration between India and the United States.
A buzzing economy, equity benchmarks at record highs and a rapidly growing consumer market all make for a great advertisement as PM Modi pitches the country’s potential to American corporate executives and investors.
Stocks in India have lured a net $8.7 billion in foreign inflows since March, set to be the most in any quarter since the end of 2020, according to recent reports.Moreover,Modi’s visit promises more: Tesla Inc. is likely to make a significant investment in India, Chief Executive Officer Elon Musk said after meeting the South Asian nation’s leader, who also urged Bridgewater Associates founder Ray Dalio to deepen investments in the country,Indian Prime Minister Narendra Modi’s trip to the US couldn’t have come at a better time.
“Investors agree that India is passing through a ‘Goldilocks’ phase,” Samiran Chakraborty and Baqar Zaidi, economists at Citigroup Inc., wrote in a note this week after meeting equity and fixed-income investors in London.
Rupee-Among Asia’s Top Currencies:
Rupee- denominated bonds are on track to witness the longest streak of monthly buying by overseas funds in almost four years, while the local currency is offering the second-best carry returns in Asia this year, according to Bank of America.
The Indian rupee is trailing only the Indonesian rupiah this year. The sharp decline in the nation’s current account deficit, helped by lower crude oil prices and rising services exports, is buoying sentiment toward the currency.Dollar bonds issued by Indian corporates are also outperforming regional peers. Improved financial health of companies, coupled with non- performing asset ratios at banks near their lowest in a decade, have raised the appeal of corporate debt.
“Clearly, India’s favorable growth prospects, relatively younger population, as well as increasing trend toward a China+1 strategy has helped to attract investment overall,”said Mitul Kotecha, head of emerging markets strategy at TD Securities.As global investors continue to show confidence in India’s economic prospects, the country is poised to capitalize on this momentum and further accelerate its growth trajectory.