India corners huge foreign inflows in CY20, shows data
The flows are largely driven by easy liquidity sloshing across the globe which found its way into emerging markets
India has cornered the biggest chunk of overseas investor flows into the emerging markets, after China, in CY20 said an economic survey.
The Foreign Policy Inflows (FPI) in India for the year stood at $22.6 billion, 58 percent higher than that in 2019, with energy and financials absorbing the biggest share of flows.
The flows were largely driven by easy liquidity sloshing across the globe which found its way into emerging markets. India-dedicated funds, however, have seen outflows to the tune of $9.1 billion in CY20, the EPFR data compiled by Kotak Institutional Equities shows.
As per the data, India also benefited from relatively low flows to China as global sentiment towards that country soured somewhat after the Covid outbreak. China attracted foreign flows to the tune of $104 billion, but 21 percent lower than the $132 billion it saw in 2019.
A recent report by the United Nations said that India's economy could prove to be the most resilient in the subregion of South and South-West Asia over the long term, adding that a positive but lower economic growth post-COVID-19 pandemic and the country's large market will continue to attract investments.