2 weeks ago

Kotak Equities sees India inflows surging to $120 billion FY27

Kotak Equities sees India inflows surging to $120 billion FY27
India’s capital inflows may surge to $120 billion in FY27, says Kotak Equities · firstpost.com

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.

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

Sources

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