‘India well placed to attract more foreign investment’

mumbai

The relative attractiveness of India as an investment destination is likely to improve this year due to various factors, such as strong macroeconomic fundamentals and attractive valuations, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta said on Wednesday.

The RBI also does not see any dent in remittance flows into the country because of the West Asia crisis, she said.

In comments made a few hours after a West Asia truce reversed investor sentiment, the RBI official expressed confidence that the country's strong macroeconomic fundamentals would attract increased foreign investment.

"The relative attractiveness of India as an investment destination is expected to increase this year because of the factors, such as valuations have become more attractive, and the exchange rate makes investment into the country more attractive with a higher nominal GDP growth, which will help with earnings as well," Gupta said during the post-policy conference.

Governor Sanjay Malhotra added that India's macroeconomic fundamentals are strong, and it is a matter of time before the flows will come back.

"The macroeconomic fundamentals of the country are very strong. It's only a matter of time, whether it is FPI [foreign portfolio investment] or FDI [foreign direct investment], both should come to India and be a part of this growth story," the Governor said.

"Those who are patient and want to make long-term money will certainly come to India; those who are for quick money, they will come and go," he added.