Big disclosure in RBI bulletin: Foreign investors’ confidence in Indian economy increased again, know the latest figures of FDI and development

Amidst the ongoing economic uncertainties around the world, threats of war and disruptions in the global supply chain, the Indian economy has once again proved its strength. According to the latest ‘State of the Economy’ bulletin released by the Reserve Bank of India (RBI), despite the global slowdown, India remains firmly among the fastest growing major economies of the world. The biggest thing is that in the Indian market and economy Foreign Investors/FPI & FDI The trust is being restored rapidly again. Let us understand the key points and figures of this RBI report from a business reporter’s perspective.

Return of foreign capital and strong external sector

The RBI bulletin clearly states that the surge in foreign investment in recent months shows that despite the global economic turmoil, India’s attractiveness remains intact.

• Reforms in FDI and FPI: According to the report, in the last few months, the attitude of foreign investors has turned positive on both portfolio investment (FPI) and foreign direct investment (FDI) fronts.

• Benefits of trade agreements: The pace of the country’s exports and imports has been quite strong in the first quarter due to the implementation of the India-UK Free Trade Agreement (India-UK CETA) and progress in other bilateral trade agreements.

• Forex Reserves: The position of the country’s foreign exchange reserves remains strong, which is fully capable of withstanding external economic shocks.

Industrial and service sectors gave impetus to the economy

The Reserve Bank believes that domestic demand and strong services sector have a major role in the strength of the Indian economy:

1. Service and Industrial Sectors: All the major indicators of manufacturing, IT, banking and services sectors are continuously indicating growth.

2. Agriculture and food grains: Although there has been unevenness in the pace of the south-west monsoon, food inflation is expected to remain under control due to the government having adequate food grain stocks.

3. Artificial Intelligence (AI) and modern technological investments: Huge investment in digital technology and AI infrastructure in the country has also attracted foreign investors.

How did India become a ‘safe haven’ amid global challenges?

The RBI bulletin warned that risks such as ongoing tensions in West Asia, disruption of maritime trade in the Red Sea and volatility in global crude oil prices still remain.

Nevertheless, due to strong banking system (Healthy NBFCs and Banks), controlled fiscal deficit and stable government policies, foreign investors see India as a market offering safe and guaranteed returns. In the coming times, as the festive season approaches, the inflow of foreign funds into the Indian markets is likely to increase further.