Key Takeaways from the Panel Discussion on Foreign Investment in India

Introduction

• The panel focused on foreign investors' perspective on India.
• Discussed foreign investment in listed/unlisted markets, real estate, private equity, and the global view of Indian markets.

Panelists

• Anker Gupta (Brookfield)
• Vishal (Warburg Pincus)
• Florian (Amundi)
• Ambassador Stener (Norway)

Norway's Investment Perspective

• Norway sees India as a promising market for FDI and FPI.
• Norwegian investments in India tripled since 2020.
• Trade and economic partnership agreements with India are enhancing relations.
• Growth potential in India attracts Norwegian businesses.

Private Markets and Disenchantment

• No disenchantment towards India in private markets.
• High interest from private equity investors despite challenges.
• Concerns include valuation, potential returns, and regulatory factors.

Real Estate Market

• India offers investment opportunities in real assets, despite some volatility.
• Investment environment seen as the best in 15 years.
• Public capital flows may change, but private capital formation sustains.

Amundi's Perspective

• India is valued for structural growth; slightly cyclical downturn observed.
• Forward ROE in India is high compared to other emerging markets.
• Concerns about valuations and taxation.

Taxation and Currency Factors

• Consistency in tax policy is crucial; perceived as a cost factor.
• Taxation impacts competitiveness; consistency allows better pricing.
• Depreciation of the Indian rupee is less concerning recently.

Global and Geopolitical Factors

• India should capitalize on China plus one policy by enhancing manufacturing capabilities.
• India's macro-micro balance is crucial for attracting more investment.

Investment Opportunities in India

• Sovereign wealth funds are expected to increase investments.
• Climate investment funds are significantly directed towards India.
• The need for India to remain competitive and welcoming to attract global capital.

Panelists' Investment Recommendations

• Vishal: Invest in Indian banks as their success is tied to India's growth.
• Ambassador Stener: Focus on green energy and maritime sectors.
• Anker Gupta: Invest in the real economy, particularly in real assets.
• Florian: Recommend medium-term equity investment in large-cap stocks.

Conclusion

• Overall optimistic outlook on India's potential to attract and sustain foreign investments.
• The panel echoed confidence in India's capacity to grow and offer opportunities across various sectors.