Foreign Portfolio Investor have amassed holdings in Indian securities exceeding the $1 trillion mark, a milestone underscoring the country’s growing allure among global investors. As of the end of September 2024, Foreign Portfolio Investor assets under custody in India reached $1.1 trillion (Rs 84.4 trillion), with $930 billion (Rs 78 trillion) invested in equities and the remainder allocated to debt and hybrid instruments, according to data from NSDL.
The Indian markets have delivered high long-term returns, second only to the US. India first opened its doors to Foreign Portfolio Investor in 1992 (then known as foreign institutional investors, or FIIs), in the wake of the 1991 balance of payments crisis. At the start of NSDL’s data records in 2012, total Foreign Portfolio Investor assets under custody stood at $243 billion (Rs. 13.4 trillion). This figure surpassed $350 billion in 2014 and broke the $500 billion barrier in 2017.*
The United States accounts for the highest share of Foreign Portfolio Investor investing in India during the fiscal year 2023-24, highlights a report by the SEBI. As per the repot, as of March 31, 2024, the total number of registered Foreign Portfolio Investor in India reached 11,219. It emphasized the distribution of Foreign Portfolio Investor across different countries. The United States topped the list with 3,457 registered Foreign Portfolio Investor, followed by Luxembourg with 1,393 and Canada with 804.
