Stories
Barclays CEO: Global Rotation Could Bring FPI Flows Back to India, But Self-Reliance is Key
- •Barclays Global CEO C.S. Venkatakrishnan suggests foreign investment could return to India as global capital rotates away from US markets.
- •Venkatakrishnan emphasizes that domestic investment is crucial for India, enabling it to withstand short- and medium-term fluctuations in foreign flows.
- •He notes that the decline in foreign institutional and direct investment is a broader global allocation shift, not specific to India, with Europe also seeing weaker flows.
- •India's macroeconomic performance remains strong, with 7.5% growth despite global uncertainties and continued capital formation, especially among mid-sized companies.
- •Barclays plans to re-enter India's equities market, viewing it as a missing component in its existing investment banking, markets, corporate, and private banking operations.
Key Questions Answered
Barclays Global CEO C.S. Venkatakrishnan stated that foreign investment into India could return as global capital undergoes a rotation trade away from US and European markets, though he emphasized that India should prioritize domestic investment and not rely on overseas flows.
According to Barclays CEO C.S. Venkatakrishnan, the decline in foreign institutional and direct investment is part of a broader global allocation shift rather than an India-specific issue, with investors attracted to US markets and regions like Europe also experiencing weaker foreign flows.
Barclays already operates in investment banking, markets, corporate banking, and private banking in India, and the bank is now looking to re-enter India's equities market after several years of absence. Additionally, the private banking division is targeting a 25 percent annual growth rate by focusing on ultra-high-net-worth families.
