2 weeks ago
Kotak Equities sees India inflows surging to $120 billion FY27
Money flows in and out of every country, and countries keep track of that money.
When more money comes into a country than leaves, it is called a surplus, and that is usually seen as a good sign.
A big investment company called Kotak Equities made a prediction about how much money might flow into India.
It thinks India could receive about 120 billion dollars in FY2027, a huge jump from just 2 billion dollars the year before.
Much of that money would come from banks, especially special deposits called FCNR(B) accounts that Indians living abroad can open.
Indian companies could also borrow money from other countries, called external commercial borrowings.
This extra money could help India even though the country is expected to spend more on imported oil and have a bigger trade gap.
However, the report says fewer companies might directly invest in building things in India, which is called foreign direct investment.
In the end, the report says India's money situation looks stronger next year, but some investments may still move up and down quickly.
Kotak Institutional Equities projects India's capital account inflows could surge to around $120 billion in FY2027, up sharply from $2 billion in FY2026.
Banking capital is expected to drive most of the inflows, at roughly $80 billion, including nearly $70 billion through FCNR(B) deposits.
External commercial borrowings are estimated to contribute an additional $20 billion to the projected inflows.
Kotak expects India to post a balance of payments surplus of $61 billion in FY2027, even as the current account deficit widens to 1.2% of GDP.
Net FDI inflows remain subdued at $6.9 billion in FY2026, down from $44 billion in FY2021, while FPI flows are likely to stay volatile.
- Who
- Kotak Institutional Equities, an Indian brokerage, prepared the strategy report on India's external accounts.
- What
- India's capital account inflows could surge to about $120 billion in FY2027.
- Where
- India
- When
- The projections cover India's FY2027, with FY2026 used for comparison.
- Why
- Expected surges in banking capital, FCNR(B) deposits and external commercial borrowings are seen offsetting a widening current account deficit.
Key facts
- Projected capital inflows (FY2027)
- Around $120 billion
- Capital inflows (FY2026)
- $2 billion
- Expected banking capital (FY2027)
- Around $80 billion
- FCNR(B) deposits (FY2027 estimate)
- Nearly $70 billion
- External commercial borrowings (FY2027 estimate)
- $20 billion
- Projected balance of payments surplus (FY2027)
- $61 billion
- Projected current account deficit (FY2027)
- 1.2% of GDP
- Assumed average crude oil price
- $85 per barrel











