Despite the slump in India’s gross domestic product (GDP) growth rate, Foreign Portfolio Investors (FPIs) have continued to invest in India. Since the time the finance ministry took a number of measures to provide an impetus to the economy’s growth rate, they have engaged in spirited buying. But retail investors need to bear in mind that a strategy that works for FPIs may not be suitable for them.
Reforms such as the Goods & Services Tax (GST), Bankruptcy Code, Digital India, Start-up India, Make in India, skill development, affordable housing, and steps like a timely boost to the realty sector, emphasis on better infrastructure (Bharatmala Pariyojana), bank recapitalisation, measures taken to boost consumption, to name a few, have been viewed positively by FPIs.
In addition, the Reserve Bank of India (RBI) has remained accommodative in its monetary policy action and