Rs 14,000 crore overseas inflows in last 15 days, Rs 72,000 cr this year
Mumbai: This is going to be a great news for the Indian economy. Latest data released by the government suggests that the overseas investors have invested as much as Rs 14,000 crore into the Indian markets within the first fifteen days of this month alone.
It is needless to emphasize the fact that this is a huge sum and it makes the total inflow to around Rs 72,000 crore since the beginning of the year.
The managers of Indian economy are going to be elated by the spurt in the net inflow into the economy. The analysts expect the inflows to accelerate further going ahead following the passage of the Insurance Bill in Parliament and assurances in the Union Budget to revisit controversial issues like General Anti-Avoidance Rule (GAAR).
Data released by the government suggest that the Foreign Portfolio Investors (FPIs) have bought shares worth a net Rs 9,134 crore during March 2-13, while in the debt segment, their net inflows stand at Rs 4,567 crore, taking the total to Rs 13,706 crore ($2.2 billion), as per the data compiled by the Central Depository Services. The latest inflow takes the foreign investments in the country’s capital markets (equity and debt segments) to Rs 71,958 crore ($11.63 billion) so far this year.
The new development is going to brighten the economic scenario in the country further. Market participants attributed the robust inflows to positive investor sentiment driven by the government’s announcement of several reform measures. Experts further said that inflows will continue in the coming months because of the passage of the Insurance Bill in the Rajya Sabha last week as many foreign investors are keen on partnering in insurance businesses. Besides, Finance Minister Arun Jaitley announced a slew of measures to attract overseas investment in the country in his Union Budget.
This year foreign inflow is going to be higher than the last year. In 2014, the net investment by overseas investors in debt markets was Rs 1.59 lakh crore, while the figure for equities stood at Rs 97,054 crore. Overall net investment by foreign investors stood at Rs 2.56 lakh crore last year. To soothe investors’ nerves, Jaitley had deferred the controversial GAAR by two years, saying that its immediate applicability can create ‘panic’ in markets.