Why FIIs Aren't Returning To India Yet | Punita Kumar Explains The Real Challenges

Foreign investors remain cautious on India despite its long-term growth potential. Speaking to Business Today, Punita Kumar Sinha, Managing Partner, Pacific Paradigm Advisors, said India needs to significantly increase investment in research, development, and innovation to stay competitive with global economies like China. She added that strong domestic investor participation has supported market valuations, while sectors such as healthcare, financials, defence and capital goods continue to offer attractive growth opportunities. However, inflation, labour shortages and weaker discretionary spending remain key challenges for some industries. Watch this video to understand what could bring foreign institutional investors back to Indian markets.