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Eco Survey highlights India's growing weightage in global indices

Effective April 1, 2020, Centre had relaxed FPI limit for Indian firms to the applicable FDI sectoral limit. Move led to spike in India's foreign ownership limits (FOL) in global indices

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BS Reporter Mumbai
The increase in foreign portfolio investor (FPI) limit to the sectoral cap has acted as a catalyst for increasing weightage of domestic securities in major global equity indices, said the Economic Survey 2021-22.

With effect from April 1, 2020, the centre had relaxed the FPI limit for Indian companies to the applicable foreign direct investment (FDI) sectoral limit. The move had led to an increase in India’s so-called foreign ownership limits (FOL) in global indices.

The survey highlights the increase in India’s weightage in MSCI EM index from 8.3 per cent in 2020 to 12.45 per cent in December 2021.

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First Published: Jan 31 2022 | 5:59 PM IST

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