RBI measures attract nearly $32 billion in dollar inflows, with $7 billion from debt FPIs, says Governor Sanjay Malhotra

RBI Governor Sanjay Malhotra revealed that the Reserve Bank of India's recent measures have successfully attracted nearly $32 billion in dollar inflows, with approximately $7 billion sourced from debt foreign portfolio investments (FPIs). This influx is expected to bolster India's balance of payments and enhance external financial stability.¹

The funds primarily flowed through the Foreign Currency Non-Resident (Bank) deposit scheme, which has been a significant contributor to the total inflows. Malhotra emphasized that these measures, introduced in June, are aimed at making India a more attractive destination for overseas investors.²

In addition to the $7 billion from debt FPIs, the RBI's initiatives are anticipated to strengthen India's external finances. The governor noted that the inflows could play a crucial role in supporting the country's balance of payments position, which is vital for economic stability.

The RBI's proactive approach includes tax changes designed to lure foreign investments, particularly in debt securities. This strategy reflects a broader commitment to enhancing the funding profile through various channels, including medium-term notes (MTNs) and external commercial borrowings (ECBs).

Overall, the RBI's measures are expected to not only attract significant foreign capital but also to reinforce the country's financial framework, ensuring a robust economic outlook for India in the coming months.