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India to gain the most among emerging markets amid US economic policy shift

March 26, 2025

Mumbai, March 26

With the United States shifting its economic stance, emerging markets are poised for a significant rally, and India stands to gain the most with robust foreign institutional investors (FII) inflows returning into its markets, a new report said on Wednesday.

There is a paradigm shift in global economic dynamics driven by the US administration’s evolving fiscal and monetary policies.

This transformation will shape investment opportunities, urging investors to navigate the changing landscape with strategic foresight,” said Emkay Global Financial Services in its ‘India Strategy Report’.

As capital moves away from dollar assets, India’s strong economic fundamentals, supportive policy environment, and attractive valuations position it as a prime beneficiary of global capital flows, the report noted.

India’s markets are set to extend their 4.5 per cent rally, fuelled by strong foreign institutional investor (FII) inflows.

“India is poised to benefit significantly from this global economic realignment. A weaker dollar and declining US bond yields are expected to drive foreign institutional investor (FII) inflows into Indian equities,” said the report.

Additionally, India remains resilient with strong fiscal and monetary support, making it an attractive investment destination.

 

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