New Delhi (NVI): Financial Year (FY) 2020-21 witnessed strong Foreign Portfolio Investment (FPI) inflows into the Indian equity markets of Rs 2,74,034 crore, thus, reflecting steadfast confidence of foreign investors in the fundamentals of the Indian Economy, the Ministry of Finance said today.
According to the Ministry, Foreign portfolio investors put in a record amount of Rs 2.74 trillion ($37 billion) during the FY 2020-21 that ended in March.
The robust FPI flows came on the back of faster than expected economic recovery supported by multiple tranches of innovatively designed stimulus packages, said Finance Ministry in a statement.
The Government and regulators had also undertaken major policy initiatives directed at improving ease of access and investment climate for FPIs in the recent past, it said.
These include simplification and rationalisation of the FPI regulatory regime, operationalisation of the online Common Application Form (CAF) for the purpose of registration with SEBI, allotment of PAN and opening of bank and Demat accounts etc.
The increase in aggregate FPI investment limit in Indian companies from 24% to the sectoral cap has been a catalyst for increase in weightage of Indian securities in major equity indices, thus mobilising massive equity inflows, both passive and active, into Indian capital markets, as per the Ministry.
The growth forecast for India in FY 2021-22 have been pegged above 10% by the World Bank, IMF and several global research organisations underscoring that India will continue to remain an attractive investment destination in the near future, it said.