India leads Asian Investment surge amid Global Tariff uncertainty
India is gaining a leading position in foreign investment. Due to the uncertainties of tariffs, the focus of foreign investors has been on India, making the country one of the three major beneficiaries of Asia. The stability of the rupee, interest rate cuts and making India an attractive market for investment are the main reasons for this success.
Foreign investment in the Indian market is progressing steadily. As per the report, increased uncertainties caused by tariffs have led foreign investors to focus on India, positioning it as one of the top three beneficiaries in Asia.
Achieving this status depends on several factors, including the stabilization of the rupee, interest rate reductions, and India emerging as a prime destination for foreign investments. A stable rupee and potential interest rate cuts could enhance economic growth, potentially drawing investors from South Korea to India.
Investing in the Indian Market
After the fall in the Indian rupee, now the stable phase is going on. In 2024, the rupee depreciated by 2.9 per cent but is now expected to rise against the US dollar. At the same time, a BofA Securities official said that India is one of the best markets to invest, which can also attract investors from South Korea.
RBI may cut repo rate
BofA Securities believes that the RBI may cut the repo rate by 25 basis points. With inflation below 4%, the central bank may reduce rates to stimulate economic growth.