Resilient growth outlook seen bringing FPI flows back to India

A likely tapering of rate hikes by US Fed is also seen taking the global sheen off the dollar and working in favour of emerging markets

Following a year of heavy capital outflows, Indian financial markets are likely to be recipients of overseas portfolio investment in 2023 as domestic economic growth, while seen slowing, is still likely to outpace that in several pockets of the world, analysts said.

With the global economy likely to take a large knock in 2023, India’s relatively stronger growth footing, coupled with low existing levels of foreign investment into emerging markets puts the country in an advantageous position. A likely tapering of rate hikes by the US Fed is also seen taking the global sheen off the dollar and working in favour