Jio BlackRock Reports Return of Foreign Investment to India

Jio BlackRock Asset Management reports that foreign investor sentiment toward India is improving following a return of foreign institutional investor inflows in July. The firm suggests the period of heavy foreign withdrawals may be ending, noting that market valuations, including the 12-month forward price-to-earnings ratio, have returned to their 10-year averages.

While domestic mutual fund inflows have helped cushion market volatility, the report warns of a decline in consumer confidence. Both urban and rural confidence levels have hit their lowest point since September 2023, a trend that could negatively impact corporate earnings.

Looking toward long-term growth, the report cites projections from Morgan Stanley indicating a significant expansion in the industrial sector. India's manufacturing gross value added is expected to grow from USD 519 billion in 2025 to between USD 1.5 trillion and USD 2.05 trillion by 2035.