World Bank Bank in the Indian economy: “Brilliant light in the world, the best place to invest”

Amid the concerns about foreign institutional investors (FII) who withdraw from Indian markets, the World Bank has reaffirmed its confidence in the economic career of India. Speaking at the advantage of the Assam 2.0 business summit, the world bank director, Auguste Tano Kouame, dismissed concerns about short -term fluctuations, described India “the brilliant light in the world” and urged global investors to capitalize on their growth.

“We are not worried about the growth of India at this time. We are very optimistic about India and we will continue to be optimistic,” Kouame said, adding that the minor variations in growth rates do not affect the overview. “If someone is worried about recent data, we would like to say that you don’t worry. India is the brilliant light of the world. If you are looking to invest, come to invest here. Indian growth makes it the place to invest. “

Investor concerns in the middle of the sale market

Kouame’s comments arrive at a time when FIIs have been leaving the Indian stock market, which caused a significant recession in Sensex and Nifty. Since October 2024, global investors have taken almost ₹ 2 Lakh crore in shares, which leads to a decrease of more than 10% in Sensex. The broader indices have been stronger, and the BSE MIDCAP falling 19% and the Bsis Smallcap that withdrew from 21% during the same period.

The mass sale has continued in 2025, with the download of almost ₹ 1 Lakh crore in shares in just 33 negotiation sessions until February 14. This trend is not exclusive to India, since most of the main emerging markets (except Thailand) have also witnessed the negative FII flows. According to Kotak Securities, India, Brazil, Indonesia, Malaysia, Philippines, South Korea, Taiwan and Vietnam faced exits, while Thailand was the only exception, attracting $ 17 million in FII tickets.

Analysts attribute this capital flight to the change of global economic policies, particularly the increase in bond yields in the United States, which have made US assets more attractive to investors. Vipul Bhowar, senior investments that are quoted in the director in Waterfield Advisors, explained that the greatest yields of the United States bonds have led Fii to turn from Indian actions and other emerging markets, favoring the perceived security of US actions.

Adding to investors’ concerns is a slowdown in the growth of corporate sales. The combined gross sales of NIFTY50 companies grew by 6.6% year -on -year in the quarter of December 2024, below 9.2% in the corresponding quarter of the previous year. This slow growth has decreased enthusiasm for Indian actions, further feeding the exodus of foreign capital.

Despite the strong macroeconomic foundations, the Indian market remains vulnerable to winds against external. Shrikant Chouhan, Chief of Variable Income Research in Kotak Securities, said the markets are currently focused on the downward risks, including the rates imposed by the United States on Indian exports, the uncertainty of internal growth and mediocre corporate profits in the third quarter of fiscal year 2015. Given these factors, Chouhan predicts that it is probable that the investment flows of portfolio Foreign (FPI) remain volatile in the short term.

IMP on the growth of India: the deceleration is temporary

The growth of the GDP of India had decreased to a minimum of almost two years of 5.4% in the quarter from July to September, mainly due to the weak performance in the manufacturing and mining and moderate consumption sectors. However, the deputy director manager of the IMF, Gita Gopinath, said last month that the economic slowdown of India was temporary, and the country is expected to achieve 6.5% GDP growth in this fiscal year.

“We see it as something temporary. There have been some delays in the implementation of some of the public infrastructure projects, but we see that capture. We continue to see strength in rural consumption,” Gopinath said in an exclusive interview with Business Today. Gopinath said that a recovery is on the horizon, declaring: “For the fiscal year as a whole, our growth number is 6.5%. Therefore, we hope to see a recovery.”