India's economic resilience is placing it firmly on the global investment map as foreign institutional investors (FIIs) have continued to bet on the country amid global market fluctuations. Despite geopolitical uncertainties and stock market volatility, FIIs have emerged as net investors, injecting significant funds amid attractive valuations.
According to data from the National Securities Depository Limited (NSDL), FIIs sold equity worth Rs 119,277 crore through the exchanges this year. Interestingly, they invested Rs 120,932 crore through the primary market. This trend indicates confidence among foreign investors, underlining India's institutional stability. "This means FIIs are net investors in India so far this year," noted Dr. V.K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Notably, this investment pattern is coupled with capital flow through the debt market, where FIIs invested Rs 112,409 crores. Market experts suggest the consistent equity investments by FIIs through the primary market signal optimism about India's economic prospects. Manoj Purohit, Partner at BDO India, attributes this resurgence to various factors, including favorable US economic policies, stabilized geopolitical scenarios, and controlled inflation rates.
Meanwhile, India's electronics sector is poised for significant growth, targeting $500 billion in manufacturing output by 2030, according to the TeamLease report. Currently standing at $101 billion, the industry aims to plug the $400 billion production gap within the next five years. Automotive electronics and mobile phones are expected to lead this charge, with alarming projections estimating the creation of 12 million jobs by 2027, spanning across technical and non-technical roles.
AR Ramesh, CEO of TeamLease Degree Apprenticeship, emphasized the pressing need for aligning workforce skills with industry demands, especially focusing on semiconductors and other electronic components. He stated, "Scaling apprenticeship enrollments will help create a Robust talent pipeline to meet industry needs." Investments focused on substantial infrastructure improvements and policy backing are deemed pivotal for solidifying India’s competitiveness within the global electronics supply chain.
On the front of financial inclusivity, the Indian mutual fund industry has experienced remarkable growth, particularly among female investors. The data from online brokerage Groww revealed women's participation has surged by more than 2.5 times compared to last year, with growing engagement from smaller cities. Notably, tier 4 cities saw women's participation increase over 140%.
Lalit Keshre, Co-founder and CEO of Groww, pointed out, "Women’s SIP contributions are 25 percent higher than men’s." The mutual fund sector overall has shown tremendous vitality, with the assets under management (AUM) increasing by more than Rs 17 lakh crore this year, reaching Rs 68 lakh crore by November 2024.
The upward trend showcases not just the burgeoning investment climate but also potential shifts within the societal fabric as more women take charge of personal finances. The average monthly SIP contribution exemplifies long-term investing, signaling broader economic empowerment.
To summarize, India is experiencing significant economic growth fueled by consistent foreign investments, ambitious targets within the electronics sector, and remarkable strides toward financial inclusion, as more women participate actively within the investment framework. These combined factors mark India as not just the world's largest democracy, but also as a burgeoning hub for investment and economic activity moving forward.
