India's new foreign investor scheme attracts 164 registrations in initial 100 days

India has launched a dedicated framework to encourage foreign investment in local equities, with the scheme registering 164 participants within its first 100 days of operation. The initiative comes as overseas investors have scaled back exposure to Indian stock markets to levels not seen in nearly two decades, underscoring challenges in attracting international capital.

Foreign portfolio investment in Indian equities has contracted significantly, reflecting broader concerns about currency stability and market conditions. The rupee has emerged as one of Asia's worst-performing currencies this year, a factor that has dampened enthusiasm among overseas investors who face additional headwinds from exchange rate volatility.

The SWAGAT-FI scheme is designed to provide a streamlined investment pathway with reduced regulatory barriers for qualified foreign participants. Officials view the registration numbers as a positive initial response, though the figures underscore the scale of the challenge in restoring foreign investor confidence to historical levels.

Analysts point to multiple factors affecting foreign equity flows, including global interest rate environments and geopolitical uncertainty. India's policymakers have indicated that improving the ease of market participation and addressing currency concerns remain priorities in efforts to restore foreign capital inflows to the equity markets.