January 2016, Economy
Foreign Portfolio Investors poured in just about $7.4 billion in the Indian debt markets in 2015, after having pumped in a staggering $26 billion in the preceding year.
Foreign funds also stayed away from Indian equities in 2015 and invested just Rs. 17,806 crore ($3.2 billion) in stock markets last year. In comparison, FPIs had been investing around Rs. 1 lakh crore each into equities in the preceeding three years.
The decline in inflows has been attributed to a slew of domestic and international factors including concerns of a global slowdown, Chinese equity meltdown and an imminent interest rate hike by the U.S. Federal Reserve.
Besides, delay in implementation of major economic reforms in India also dampened investors’ sentiments.
As per the data available with depositories, Foreign Portfolio Investors (FPIs) infused a net amount of Rs. 45,856 crore ($7.4 billion) in the debt markets in 2015 as compared to a record investment of Rs. 1.6 lakh crore ($26 billion) in the previous year.