Strengthening India's Economic Stability: The Strategic Role of Foreign Portfolio Investments

FPIs, drawn to profits from Indian stocks, rely on the GOI's proactive policy measures to ensure high stock market returns, crucial for maintaining substantial forex reserves a rising trade deficit

In FY-24, India's net direct Foreign Investment plummeted to its lowest level since FY-12, standing at just $10.6 billion compared to the peak of $44 billion at the end of FY-21. Amidst this decline, there has been a noticeable pivot toward Foreign Portfolio Investments (FPI). Given this shift, I am embarking on a detailed analysis of FPI in India, exam…