Modi Government’s Economic Policies Hit by Foreign Investor Exodus from Indian Markets

Global investors increasingly distancing themselves from Indian bond market despite Modi’s economic assurances

Growing disappointment with Modi’s flawed economic strategy is eroding global investor confidence in India

According to Indian Magazine The Wire:

Foreign investors are withdrawing funds from Indian government bonds and shifting their investments to developed countries in search of safer options and better returns.

Foreign investors have sold Indian bonds worth Rs 987 crore since August, The Wire reported.

The narrowing interest-rate differential in India is reducing foreign investors’ interest and weakening the appeal of the Indian market, The Wire reported.

The decision by Bloomberg not to include Indian local debt in its global market indicators has dealt another major blow to investment in India, according to The Wire.

Indian Journalist Abhinav Trivedi Says:

Lower returns, high valuations, a weak currency and higher taxes are discouraging global investors from investing in the Indian market.

Modi’s Economic Policies Under Pressure

Instead of addressing India’s financial vulnerabilities, Modi’s flawed economic policies have put the country’s economic credibility at risk on the global stage.