The World Bank is up to the Indian economy: “The bright light in the world, the best place to invest”

Amid concerns about foreign institutional investors (FIIS) of clouds from Indian markets, the World Bank reaffirmed its confidence in the economic track of India. Speaking in favor of ASSAM 2.0 Business Summit, the World Bank Director Auguste Tano Kwami refused concerns about short -term fluctuations, describing India as a “bright light in the world” and urged international investors to benefit from its growth.

“We are not worried about India’s growth at the present time. We are very optimistic about India and we will remain optimistic,” Kwami said, adding that minor differences in growth rates do not affect the largest image. “If someone is concerned about modern data, we would like to say that don’t worry. India is the bright light in the world. If you are looking for investment, come and invest here. Indian growth makes it the right place to invest.”

The investor’s concerns amid the sale of the market

Kouame’s comments come at a time when Fiis was coming out of the Indian stock market, which led to a significant decrease in Sensex and NIFTY. Since October 2024, global investors have withdrew approximately 2 rupees of shares, which led to a decrease in more than 10 % in Sensex. The broader indicators were more powerfully, as BSE MIDCAP decreased by 19 % and BSE SmallCap, which decreased by 21 % during the same period.

The sale lasted until 2025, when Fiis dropped nearly 1 rupees of shares in 33 trading sessions until February 14. FII flows. According to Kotak Securities, India, Brazil, Indonesia, Malaysia, the Philippines, South Korea, Taiwan and Vietnam all faced external flows, while Thailand was the only exception, as it attracted $ 17 million in FII flows.

Analysts attribute this capitalist journey to the transformation of global economic policies, especially the increasing revenues of bonds in the United States, which made American assets more attractive to investors. VIPUL BHOWAR, chief manager of the list at Waterfield Adviss, explained that the revenues of the US higher bonds prompted Fiis to get rid of Indian stocks and other emerging markets, in favor of the safety of American stocks.

In addition to the investor’s concerns is a slowdown in corporate sales growth. The total joint sales of NIFTY50 companies grew by 6.6 % year on an annual basis in the quarter of December 2024, a decrease from 9.2 % in the corresponding quarter of the previous year. This slow growth has reduced enthusiasm for Indian stocks, which increases the feeding of foreign capital migration.

Despite the basics of a strong macroeconomic economy, the Indian market is still vulnerable to external opposite winds. Shrikant Chouhan, head of stock research at Kotak Securities, noted that the markets are currently focusing on negative risks, including definitions imposed by the United States on Indian exports, uncertainty in local growth, and fading companies’ profits in Q3 Fy25. Looking at these factors, Qohan predicts that investment flows in the foreign wallet (FPI) are likely to remain volatile in the short term.

International Monetary Fund for India’s growth: temporary slowdown

The growth of GDP in India has slowed down to the lowest two -year level of 5.4 % in the quarter of July to September, due primarily to poor performance in the manufacturing, mining, and subject consumption sectors. However, the deputy director of the International Monetary University, Jetta Jobinaith, said last month that the economic slowdown in India was temporary, and the country was expected to achieve 6.5 % of GDP in this fiscal year.

“We see it as a temporary thing. There was some delay in implementing some public infrastructure projects, but we see that picking. Jubainath stressed that recovery is on the horizon, saying:” for the financial year as a whole, our growth number is 6.5 %. So we expect to see a recovery. “