“It is not a big deal if the foreign direct investment slows down,” says CEO CapitalMind Trend, says markets will provide exits and will come more money

Deback Shinoy, CEO of CapitalMind on Thursday, said on Thursday that the external flow of direct investment (FDI) from India may rise, but this trend does not warn of danger. In explaining the mechanics behind this transformation, Shinoy pointed out that “the net foreign direct investment in India has decreased significantly but not evil.” He added: “Foreign direct investment is still strong, but external flows have increased. What does that mean? Let me explain.”

In a detailed post, Senoy emptied the nature of foreign direct investment, explaining that “it is a foreign entity that buys stocks in an Indian company.” He distinguished foreign direct investment from foreign portfolios investments (FPI), saying: “Now you have a fi, which are portfolio investments by people such as hedge boxes and index boxes, all of which, to Indian companies.

He added: “When VC invests from a foreign entity in an Indian company, it is foreign direct investment. When Amazon Us funds losses in its Indian entity, it is possible that it will bring property rights (because taking debt from the outside is Painnnnn) like foreign direct investment.”

In reference to the background operations of the global companies, Shinwe said: “Most of the Gulf Cooperation Council countries will only transfer their prices to Indian, meaning that JPor USA will pay JP Morgan India fees on background operations, so that the revenue of the Indian company, not shares, is not foreign direct investment.”

He referred to the last market exits by investment capital companies and sales participation by multinational companies as the main reasons behind the current external flows of foreign direct investment. “What comes at a time when foreign direct investment cannot come out except as an Istraleal Istrazel,” he explained: “Many MNC shares have been subjected to foreign direct investment from its owner’s promoters for decades, in ownership of 75 % (maximum possible). This is unhealthy because the remaining floating is gathered by a few money and investors, and therefore these shares are a trade in assessments Ludicros. “

“Some of these companies are like waiting, we can sell in these funny assessments and we still have to control the company?”

He also highlighted the encouraging trend in the capital market in India. “The second important point is the appearance of local capital to find growth. Both at VC or PE levels, and in the markets, local participation has increased. It is now possible to build a large-scale company funded by Indian sources. It is less painful than dealing with FC-GPR, etc.”

To summarize the trend, Shinwe said: “So the external flows of foreign foreigners through VCS come out because they must (and even if they sell to a foreign box, it is considered the exceptional flow of foreign direct investment, the FPI flow), or by foreign promoters who create more space for promoters who do not exceed them abroad. For these reasons.

He concluded that “finally two things will come as well as one. One, Indian companies will invest abroad, buy large companies around the world. Second, companies will include and collect more money from foreigners such as QIP (which is FPI, not foreign direct investment). Slow but I think it is temporary.

Meanwhile, according to the Ministry of Trade and Industry, India received $ 81.04 billion in foreign direct investment in the fiscal year 2024-25, an increase of 14 % over the previous year. The service sector was the largest recipient (19 %), followed by computer and hardware programs (16 %) and trading (8 %). Maharashtra, Karnataka, and Delhi formed the largest part of the foreign direct investment, while Singapore remained the highest source, which contributed 30 % of the total flows.

The direction of foreign direct investment in the long term in India is still strong. Between the fiscal year 2014-25, the country attracted 748.78 billion dollars in foreign direct investment – approximately 70 % of the total flows received in the past 25 years. The ministry said that government policy, sectoral liberation and increasing participation from 112 countries have strengthened the resumption of India as a global investment center.