https://www.nytimes.com/2024/01/02/business/india-economy-foreign-direct-investment.html
https://archive.is/6sH1t
From the article:
"India’s economy is booming. Stock prices are through the roof, among the best performing in the world. The government’s investment in airports, bridges and roads, and clean-energy infrastructure is visible almost everywhere. India’s total output, or gross domestic product, is expected to increase 6 percent this year — faster than the United States or China.
But there’s a hitch: Investment by Indian companies is not keeping pace. The money that companies put into the future of their businesses, for things like new machines and factories, is stagnant. As a fraction of India’s economy, it is shrinking. And while money is flying into India’s stock markets, long-term investment from overseas has been declining."
According to the article, money is pouring into the Indian stock market, and not necessarily into Indian businesses. Will the current infrastructure spend by the Government Of India translate into confidence for local and/or global investors to deploy capital in India for the long term? Is there a perception that the rule of law needs strengthening in India? How will these (particularly the latter) affect FIH?
