Global investors continue to allocate capital to India despite external headwinds from trade tensions and Middle East wars, citing fiscal prudence and strong gross domestic product outlooks.
Portfolio managers said stable inflation targeting, manageable current account deficits and robust services exports differentiate India from more volatile emerging peers.
Bond market liberalization and record foreign portfolio flows into government securities reinforce the narrative of India as a diversification play within Asia.
Risks remain if oil prices surge or export lanes stay disrupted, but asset allocators said baseline growth projections still justify overweight positions relative to benchmarks.
Created by Ayen Stabel.
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Sources:
https://www.business-standard.com/economy