Amundi says foreign investment in India lags behind economic growth potential

Amundi reports that global portfolios underrepresent India despite its strong growth and fiscal discipline. Recent trade deals are expected to boost flows.

Insights:
Didier Borowski, the head of macro policy research at the Amundi Investment Institute, stated on February 13, 2026, that foreign portfolio and strategic investment flows into India ININ do not reflect the nation's rising share of global economic growth. This assessment follows a period where foreign investors net sold nearly $23 billion of Indian stocks between January 2025 and 2026, a move that pushed allocations to the country to decadal lows. The mismatch between the economic significance of the nation and current portfolio allocations has significant implications for the scale and composition of capital flowing into Indian equities and Indian debt markets.
A general view of the skyline in Mumbai, India, May 5, 2025. REUTERS/Francis Mascarenhas/File Photo
A general view of the skyline in Mumbai, India, May 5, 2025. REUTERS/Francis Mascarenhas/File Photo
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