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Informist, Wednesday, Apr. 8, 2026

 

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--RBI Malhotra: Hopeful to get good FPI inflows in debt
--RBI Malhotra: Hopeful FPI outflows from equity are not so high
--RBI Malhotra: Only a matter of time that FPI, FDI will come to India 
--RBI Malhotra: Expect repatriation of foreign funds to slow down FY27 
--RBI Malhotra: Expect repatriation, overseas direct investment to slow FY27
--RBI Malhotra: India's fundamentals are strong, will attract capital 
--RBI Malhotra: India's demographics are strong, will attract capital 
--RBI Malhotra: India offers macro economic stability, will attract capital 
--RBI Gupta: Remittances come from diverse regions, share of Gulf nations dn 
--RBI Gupta: Not anticipating dent in overseas remittances 
--RBI Gupta: Attractive valuations will attract foreign capital 
--RBI Gupta: Exchange rate will attract foreign capital 
--RBI Gupta: High nominal GDP growth to attract foreign capital 
--RBI Gupta: Higher valuations led to outflow of foreign capital 
--RBI Malhotra: High valuations have corrected so expect lower outflows 
--RBI Malhotra: FTAs should help India capital account, current account 
--RBI Malhotra: Capital account seems robust, current account manageable 
--RBI Malhotra: We need to continue good work done on current, capital accts 

MUMBAI – Reserve Bank of India Governor Sanjay Malhotra Wednesday said he is hopeful of good inflows from foreign investors in the debt market in the financial year 2026-27 (Apr-Mar) and lower outflows from these investors from the equity market. India's fundamentals and demographics are strong and the country also offer macroeconomic stability, which will attract foreign capital, Malhotra told the post-monetary policy press conference.

 

Malhotra said it is "only a matter of time" till foreign portfolio investments and foreign direct investments come to India. He expects repatriation of foreign funds to slow down in FY27.

 

"Because of the policies, because of the demographics, because of the urbanisation, because of the financial conditions that are there, the stability that we offer, it's a matter of time that those people who want to make, those who are patient, those who want to make long-term money, they will certainly come to India," Malhotra said. He expects outflows from India's equity market to reduce in FY27 as valuations have turned attractive. There were outflows of foreign capital in FY26 due to higher valuations which have since corrected, Deputy Governor Poonam Gupta said.

 

Asked if there was concern about overseas remittances and the importance of remittances from West Asia, Gupta said remittances come from a diverse set of regions and the share of the Persian Gulf countries in this has declined over time. She said the central bank does not see any dent in overall remittances this year. Remittances from West Asia could even increase as the geopolitical crisis in the region may be resolved soon, she said.

 

"When I talk about the diversity, it's not just the geographical diversity, it's also the kind of skill pool we have across different countries," Gupta said. "We have relatively low-skilled, medium-skilled, and high-skilled migrant workers who send these remittances." Gupta added that exchange rates and high nominal GDP growth will "help with (corporate) earnings" and attract more foreign capital this year.

 

Malhotra said the free trade agreements already signed and those in the pipeline with major economies will help both the current account and capital account. "So capital account seems very robust," the governor said. "Current account seems to be quite manageable. So I'm not at all concerned with the BoP (balance of payments) position of our country... we do need to continue the good work that has been done on both the current account and on the capital account and that makes me confident that the BoP position should going forward improve."  End

 

Reported by Ashutosh Pati

Edited by Rajeev Pai

 

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