India’s foreign reserves continue to march to record level and is has now reached a staggering USD 393 billion early this month. This was made possible since the rally was backed by strong foreign portfolio and investment flows, according to Development Bank of Singapore.
“Strong year-to-date foreign portfolio (USD 24 billion), net investment flows (USD 13 billion) and lower absorption due to a narrower current account deficit have led to an increase in dollar liquidity,” the DBS said.
India has been receiving lot of investments from FII’s and VC’s who are moved by the opportunity which the Indian market provides and hence they have been investing in many ventures which has seen Indian billionaire list grown by manifold in the recent past. India is also becoming the preferred destination for many to invest since the rate of returns are on a positive side and has been good for the past few years consistently.
Notably, since late 2013’s taper tantrums, the quantum of jump in India’s reserves (USD 100 billion) is the highest compared to its Asian counterparts, outside of Japan, the DBS bank said which is a testimony as to how the nation has fared compared with others.