Bank of America’s President and Country Head for India, Kaku Nakhate, is confident that India is on track to become the world’s third-largest economy. Nakhate highlighted that the recent election results endorse the continuation of current policy measures and underscored the need for the government to stay focused on reforms.
Nakhate expressed her belief in the relentless growth of the Indian economy, stating that this century belongs to India. She emphasized the anticipated increase in foreign direct investment (FDI) and the expected return of foreign portfolio investment (FPI) flows to the Indian market. She noted that the recent FPI outflows from India were mainly influenced by broader trends in emerging markets.
Providing statistics, Nakhate mentioned that FDI flows have surged to $596 billion over the past decade, which is double the amount from the previous ten years. She projected that the next five years could see an additional $500 billion in FDI. Nakhate expressed strong confidence in both FDI and FPI, and highlighted the sustained domestic investment flows, with systematic investment plans (SIPs) reaching $2.4 billion in April alone.
