India remains attractive destination for global capital: Experts

The recent reciprocal tariffs imposed by the US administration on Indian goods remain relatively modest as compared to other Asian countries, resulting to continue to give a competitive edge for India.

“This opens strong proposition to offer viable export opportunities for the country. India remains one of the fastest-growing economies, with a vast consumer market, skilled workforce, and having a government striving to usher in business-friendly reforms,” said Manoj Purohit, Partner and Leader, FS Tax, Tax and Regulatory Services, BDO India.

The government’s continued focus on infrastructure, digital growth, and ease of doing business further boosts investor confidence.

The recent move by RBI to keep the existing corporate bond and G-sec limits unchanged for foreign portfolio investors (FPIs) is a testimony of the government’s intent to keep gateway open for offshore participants to continue infusing funds in India market.

Additionally, trade diversification and strategic partnerships are opening new avenues for investment. While tariffs may pose short-term challenges, India’s sound economic fundamentals ensure that foreign investors will continue to keep India a prime destination for long term investments even in a risk averse situation.

“The Indian economy currently seems well insulated to survive temporary headwinds on account of macro changes and domestic triggers of high valuation, tight earnings, and rising inflation costs,” said Purohit.

Market participants will closely track the long-term impact of the proposed tariffs, upcoming announcements from the RBI’s monetary policy stance amid expectations of a potential rate cut to strategize investment for the upcoming cycle.

The coming week is crucial, packed with key domestic and global triggers. With tariff-related tensions escalating, global investors will closely track any further developments on that front, said Ajit Mishra, SVP, Research, Religare Broking.

Back home, the Monetary Policy Committee (MPC) meeting outcome on April 9 will be a major focus, followed by key macroeconomic indicators — IIP and CPI data — due on April 11. Adding to the action, the Q4 earnings season kicks off with IT giant TCS set to announce its results on April 10.