According to a report by the press information bureau, India, in FY 2022-2023, received $71 billion in foreign direct investments, in which Singapore was the largest investor. India has proven itself to be a lucrative destination for foreign investment, and on September 2023, JP Morgan included India in its emerging debt index, paving the way for billions of investments in its debt securities.
India has a track record of having one of the world’s most robust financial markets, which have stood its ground during numerous crises that shook the world. International corporations and investors see India as an attractive destination for diversifying their portfolios and seeking higher yields. What is it about India’s debt market that makes it so appealing on the global stage? Experts have formulated numerous factors that interested parties prioritize in India’s booming debt market. The factors mentioned below are at the top of the list.
India’s stability and economic growth have positioned it as a lucrative investment destination. With a large and diverse market, it is a hotspot for ample investment opportunities for investors to capitalize on various sectors, especially infrastructure, manufacturing and services. It has shown consistent growth in GDP, has a youthful population and a thriving middle class, and this has created a healthy investment environment.
Institutional investors like the Government Pension Fund Global (GPFG) from Norway have been attracted to India's economic fundamentals, viewing it as a strategic destination for long-term investments.
"Economic stability depends on factors like infrastructure, political stability, and work-life balance. Initiatives like the Fair Work Foundation acknowledge gig workers' needs and voices," Zahidul Haque, Chief Technology Officer, Eastern Bank Limited.
BlackRock, the world’s largest asset management firm, has taken note of India’s growth potential and has strategically invested in its debt markets in a bid to diversify its global portfolio and capitalize on emerging market opportunities. Softbank has invested $15 billion since 2011, of which $11 billion was through its vision fund.