India's 11% dollar-growth pitch could draw FPIs back, but tax U-turn risks spoiling the party, says Samir Arora
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India could attract foreign investors with 11% dollar-term earnings growth, says Samir Arora.
- ✓"At 11%, the whole world will be desperate because nobody gives 11% dollar returns at a market level," he said.
- ✓While FPIs bought Rs 53,739 crore of equities in early November, any tax policy U-turn risks spoiling growth.
Story at a Glance
- Category
- Indian Markets
- Reported By
- MoneyControl
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
India could once again become a compelling destination for foreign portfolio investors, with corporate earnings growth potentially translating into around 11% growth in dollar terms -- a market-wide proposition that few other countries can offer. But the opportunity comes with a policy caveat: any retreat by the government from its signals on reducing the tax burden on investors could weaken the very sentiment that is beginning to bring foreign money back. The case for India rests on a sharp improvement in earnings growth. Indian companies delivered rupee earnings growth of just 9-10% over the past two years.
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