India is maturing as a market in which foreign investors who take into account environmental, social and governance (ESG) factors are confident in dedicating more of their portfolio to, according to fund managers at the Indian Venture and Alternate Capital Association conclave in Mumbai, who cite the economy’s scale, improving return outlook and advancing ESG standards as key differentiators.
Reuters reported that India’s market regulator SEBI has been expanding the scope of ESG-related regulations for over a decade, making detailed Business and Sustainability Report disclosures mandatory for the country’s top 1000 listed companies since 2023.
“India is clearly earning its space in terms of allocations from global investors,” said Ralph Keitel, head of Fund Investments at Zurich-based responsibility Investment, speaking to Reuters at the conclave.
“Fifteen to 20 years ago, India was a great space, but returns took longer,” Keitel said. Now he sees a stronger near-term case as well.
Investors also said the country’s appeal rests on its relative resilience at a time when global allocations are being reassessed across China, the United States and other emerging markets.
India’s economy is projectedto grow 6.5% in both fiscal years 2024-25 and 2025-26, according to the International Monetary Fund.
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