FPI or FDI.

"Indian bonds will be included on JP Morgan's GBI Emerging Markets bond index starting June, while Bloomberg has announced the incorporation of Indian bonds in its EM index from January 2025." "As India's sovereign debt nears inclusion in global bond indices, a diverse pool of international investors, ranging from long-term institutional funds in Japan, S Korea and Taiwan to exchange-traded funds in Europe, are setting their sights on the domestic bond market." ET. Foreign portfolio investors (FPI) have bought Rs 455.72 billion in India debt and, although equity has seen a net outflow of Rs 123.82 billion, the net investment into Indian markets has been Rs 407.83 billion in 2024, till 07 March. NSDL. "India's foreign exchange reserves are up by $6.55 billion to $625.63 billion for the week ending March 1, latest data by the Reserve Bank of India (RBI) showed." Perhaps, to protect our exports from becoming too expensive because of the rupee strengthening against other currencies, "Foreign currency assets (FCAs) increased by $6.04 billion to $554.23 billion." ET. "India is eyeing $100 billion in annual foreign direct investment (FDI) 'in the next few years'," which is not much. "India attracted FDI inflows of $33 billion in the first six months of the current year that started in April 2023. It recorded FDI of $71 billion in the 2022-23 financial year." Reuters. FDI investments are considered to be long term, as opposed FPI inflows, which are considered to be 'hot money', that can leave as quickly as it comes in. Investopedia. Foreign firms may hesitate to invest in India because of protectionist policies. "The Indian government has consistently raised tariff and non-tariff barriers to protect domestic suppliers across most sectors and bolster indigenous production." trade.gov. The government may feel somewhat complacent because, "India has topped the list of remittance recipient countries in the world, with a total of $125 billion sent by Indians living in different parts of the world to their families in India." Forbes. This money is spent within India. Though electricity from solar and wind sources is much cheaper than that from coal, "the government now expects coal demand to increase by about 50% between now and 2030, when it's set to hit 1.5 billion metric tons." Because "Tariffs on imported solar panels have failed to incubate a viable domestic manufacturing sector, but have succeeded in raising costs for developers," wrote Tim Culpan. Meanwhile, "The European Union launched...the first phase of the world's first system to impose CO2 emissions tariffs on imported steel, cement and other goods." Reuters. UK negotiators left India without finalizing a free trade agreement (FTA) because "The minister in charge of signing off on the FTA pointed to India's protectionist economy in comparison with the UK's liberalized regime." News 18. Protectionism attracts hot money because of easy profits. Why bother with trade?