Cross-border investments in Asia-Pacific are projected to rise by more than 33 per cent in H2 2024…reports Asian Lite News
India ranked fifth in cross-border real estate investments in the Asia-Pacific region, attracting 9 per cent of the total volume of investment within the region in the first half this year, a report showed on Saturday.
According to a Knight Frank report, the total cross-border investments in APAC touched $11.5 billion, with India receiving $3 billion from global private equity investors.
Cross-border investments in Asia-Pacific are projected to rise by more than 33 per cent in H2 2024.
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The expected turnaround of global economies in the second half of the year is likely to encourage more foreign private equity players to take advantage of the country’s robust domestic macros, according to the report.
“This influx of investment would boost the performance of Indian real estate and maintain the growth of industry assets,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India.
The office sector accounted for 36 per cent of the total global capital allocation, reflecting the strong appeal of commercial real estate assets.
The industrial sector followed closely with 30 per cent of the investment share, while the residential sector received 15 per cent and retail accounted for 10 per cent, as per the report.
According to the report, cross-border capital flows are significantly shaping the commercial real estate landscape in APAC, driving the search for new investment opportunities.
FPIs Inject Rs 54,727 Crore into India in July
The foreign portfolio investors (FPIs) pumped in Rs 54,727 core in equity and debt in July as India’s strong growth outlook for FY 2025.
An economic survey that was presented before the Union Budget this year projected India’s growth rate to be at 6.5 to 7 per cent for 2024-25.
Market experts, citing the data from National Securities Depository Limited (NSDL), said that FPIs have invested Rs 32,364 crore in equity and Rs 22,363 crore in debt in July.
For the full year-to-date, FPI investment in equity stands at Rs 35,565 crore in the country.
Experts cite three key reasons behind massive inflow: strong economic outlook, rate cut and government fiscal discipline.
Experts said: “FII flows into India should increase due to several factors. Firstly, India’s economy is performing better than many global peers, making it an attractive destination for investors. Secondly, with the risk-free rate expected to come down in the USA, investors will likely seek better returns elsewhere, including India. Thirdly, the government’s robust fiscal discipline could lead to a rating upgrade for India, enhancing its investment appeal.”
FPIs activities are influenced by various factors like the performance of the global equity markets, the movement of dollar index, incremental geopolitical events, and opportunities in the Indian markets considering slightly elevated valuation levels.
Another expert said: “This resurgence can be attributed to a stable political environment, ongoing economic reforms, and appealing market valuations within India.”
$1.03B Raised by Indian Startups in July
Indian startups successfully raised $1.03 billion in July as the government abolished angel tax in the Union Budget 2024-25 which was levied on foreign investors, according to a report on Saturday.
As per the report by Entrackr, in July, Indian startups raised a total funding of $1.03 billion under 126 deals.
Out of these, 28 were growth or late-stage deals worth $725 million, whereas 72 were in the initial-stage deals worth $311 million.
The amount raised in 26 deals has not been disclosed. However, these were early stage deals, the report said.
In July, two Indian startups were successful in raising funding of more than $100 million. E-commerce startup Purplle and automotive tech startup Rapido raised $120 million each.
After this, online hotel chain Oyo raised $50 million, fintech company Navi raised $38 million and consumer tech company Urban Company raised $38 million funding.
Indian startups raised $1.93 billion in funding in June. A total of $8 billion funding was raised by Indian startups in the first seven months of 2024.
This figure for the entire year in 2023 was $11 billion and this figure was $38 billion and $25 billion in 2021 and 2022 respectively.
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