Page 87 - Edelweiss India Conference 2022 FLIPBOOK

New Energy Digital Manufacturing Capital Markets Human Capital

Global capital more balanced: FDI stealing a march over FII

India’s global capital story has largely been seen to be a public market, FII-led phenomenon.
And that’s how it had progressed for a while—visible, market and valuation impacting,
and fast moving. The FDI – for long targetted – had been a steadier and more-in-the-
background trend. It’s also revolved largely around manufacturing-led and, relatively
conventional, investments in physical assets. This has now changed.

FDI now dominates FII
60

50

40
( 12m sum, USD bn ) 20
30

10

0
-10
Dec- 18 Jun- 19 Dec- 19 Jun- 20 Dec- 20 Jun- 21 Dec- 21 India’s global capital
story has largely
been seen to be a
FDI in services – So far underrepresented in the markets public market, FII-
led phenomenon.
60 And that’s how it
48 had progressed for
50
36 a while—visible,
40 market and valuation
27 27
30 20 impacting, and fast
(96 in total) 20 13
moving

10 6 5

0
Industry BFSI and Real Estate IT and Telecom Other services

2FY21 Market cap FY21 GVA

FDI has now been leading FII investments, and more tellingly, it’s been driven largely by
PE investments, rather than by corporates directly. And such FDI has been largely in the

in the markets.

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