Julius Baer’s Sumaya says NRIs queueing up to invest in India
Edited excerpts: From the perspective of NRIs and foreign investors, there has been a consistent uptick in investments in India year on year, fuelled by the country’s stable and genuine long-term growth trajectory. With a projected growth rate of 6.5% this year, surpassing that of any other country, and an anticipated GDP of $5 trillion by FY25, India's market is garnering increasing attention.
According to industry sources, record-breaking FDI numbers, soaring to $71 billion in FY22-23, are expected to climb to $100 billion soon, further underscore India's allure. This interest is not confined to NRIs; global investors from Asia and Middle East are also showing keen interest.
Last year, Julius Baer launched its maiden Equity India Fund, raising over $200 million in record time from investors across the globe, including NRIs, underlining the growing international appetite for India's markets. The investment patterns among NRIs have evolved over time, transitioning from investments in US large caps and technology stocks to a larger focus on Indian capital markets.
Overall, India's resilient economic growth, coupled with its diverse investment opportunities, firmly positions it as an increasingly attractive destination for NRIs and foreign investors, too. Initially, the focus for the first generation of NRIs was on traditional investments like real estate, driven by cultural ties or familial connections to the country.
However, a significant shift has unfolded over the last decade, moving away from physical assets such as real estate towards financial instruments. This transition has been buoyed by the economic consistency and stability witnessed in the last decade, including its robust economy and thriving capital
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