India Continues To Be Lucrative For Global Investors Despite Tariffs, Experts Say RBI’s Rate Decision To Be Observed Ahead

Industry experts believed that the country’s business-friendly environment, combined with stable macroeconomic indicators, positioned it as a top investment destination.

In contrast to steeper trade barriers faced by several Asian peers, the reciprocal tariffs introduced by the US on Indian exports have remained relatively restrained.

Source : ABPLIVE AI

India’s sustained economic momentum, bolstered by structural reforms and a vibrant consumer market, continues to draw global capital despite rising global uncertainties. Industry experts believed that the country’s business-friendly environment, combined with stable macroeconomic indicators, positioned it as a top investment destination.

In contrast to steeper trade barriers faced by several Asian peers, the reciprocal tariffs introduced by the US on Indian exports have remained relatively restrained. This has allowed India to maintain a trade advantage and present compelling opportunities in global markets, reported IANS.

“This opens strong proposition to offer viable export opportunities for the country. India remains one of the fastest-growing economies, with a vast consumer market, skilled workforce, and having a government striving to usher in business-friendly reforms,” said Manoj Purohit, Partner and Leader, FS Tax, Tax and Regulatory Services, BDO India.

Policy Continuity and Reform Agenda Fuel Optimism

Investor sentiment has also been buoyed by the Reserve Bank of India’s (RBI) decision to retain the current investment thresholds for foreign portfolio investors (FPIs) in corporate bonds and government securities. This move is seen as a signal that India intends to preserve access for offshore funds and sustain foreign inflows into domestic markets.

Further, India’s emphasis on digital infrastructure, logistics upgrades, and regulatory simplification is paving the way for deeper strategic partnerships and diversification in trade. While near-term trade disruptions due to tariffs could emerge, India’s economic fundamentals are viewed as strong enough to withstand such headwinds.

“The Indian economy currently seems well insulated to survive temporary headwinds on account of macro changes and domestic triggers of high valuation, tight earnings, and rising inflation costs,” Purohit added.

Crucial Week Ahead for Markets and Policymakers

As global investors assess the long-term impact of tariff measures, market watchers are also looking to key domestic triggers in the week ahead. The RBI’s upcoming monetary policy review on April 9, amid growing anticipation of a potential rate cut, will be a focal point. This will be followed by the release of macroeconomic data — industrial output (IIP) and inflation (CPI) figures — on April 11.

Ajit Mishra, SVP, Research at Religare Broking, noted, “With tariff-related tensions escalating, global investors will closely track any further developments on that front.”

Adding further weight to the week, IT major TCS is slated to kick off the Q4 earnings season on April 10, offering insights into corporate performance amid ongoing economic shifts.