Foreign investors keen on India but transparency key factor: WEF investment head

livemint.com:

NEW DELHI : Apart from a stable regulatory and policy regime, transparency in decision-making and information flow are key to attracting foreign investors to emerging economies such as India, said Matthew Stephenson, head of investment and services at the World Economic Forum. Foreign investors are keen on emerging markets, especially India, at a time of slowing global growth, but want the right information before making a decision, Stephenson said, speaking with Mint on the sidelines of the World Investment Conference 2023. “You can’t calculate your costs if you don’t have information.

Investors have to have an analysis of their rate of return," he said. “I think (India is) a good story thanks to the economic reforms, which India is benefitting from now." As things stand, a slowdown in global growth has impacted foreign direct investment (FDI) inflows into India. Tightening of interest rates due to nagging inflation, especially in advanced economies, has led to a slowdown in business, investment and trade.

In the July-September quarter (Q2, FY2024), FDI equity inflows into India declined 7.7% annually to $9.5 billion, show data released by the Department for Promotion of Industry and Internal Trade (DPIIT). Total FDI, which includes equity inflows, reinvested earnings, and other capital declined 7.8% annually to $15.3 billion in the same period. The Indian economy, however, surpassed expectations to clock 7.6% GDP growth in the September quarter, following up on the 7.8% growth in the April-June quarter, on improved consumption, stronger manufacturing, and higher construction output.