According to IIF report private sector investors are expected to pump in a whopping $1.11 trillion into emerging markets including India in 2013, this is based on the strong growth prospects.
The report said private capital flows to emerging Asia including India, China and Indonesia should remain close to their 2011 high of $547 billion.
The share of emerging Asia in total private capital flows should average 46 per cent in 2013 and 2014, just short of the 50 per cent in the previous two years.
The report states, “FDI inflows to India will be lifted by the opening up of previously closed sectors and the withdrawal of controversial tax plans, although infrastructural deficiencies and administrative hurdles will remain dampening factors.”
After investing a staggering $24 billion in Indian equities in 2012, foreign investors have infused $2.8 billion so far this year.
In India, the resumption of the reform program is on course to lift foreign purchases of domestic stocks to $21 billion in the fiscal year ending March 2013, from $7.6 billion in 2011-12,” IIF noted.
IIF, which has more than 450 members, conducted a study among 30 emerging economies including India, China, Indonesia, Thailand, Brazil, South Africa, Poland and Hungary.
Source – Agencies