India is in a melodious place – it is the fastest growing major economy in the world – and at a time when the global economy is re -moving from US President Donald Trump’s tariff uncertainties, India is soon seen to seal a favorable trade deal. This belief is reflecting to insert money back to India in global funds.Even though the IMF has revised the forecast of its GDP growth for India by 6.2%, it has focused on the relative stability of the economy in the era of global disturbance.The IMF said in April, “For India, the development approach is relatively more stable at 6.2 percent in 2025, especially supported by personal consumption in rural areas, but this rate is 0.3 percent lower. Despite additional uncertainty due to the tariff war by Trump globally, India is ready to become the fourth largest economy in the world this year, beating Japan.This week the NSE Nifty 50 index reached its 7-month peak, inspired by a positive spirit after Donald Trump’s comment about the US-India trade deal. Trump mentioned that India “introduced us a deal, where basically they are really ready to charge us a tariff on American goods”. He did not explain the nuances of this alleged proposal in detail.Commerce Minister Piyush Goyal will visit Washington from 17 May to engage in discussion with US authorities about the proposed bilateral trade agreement. The four -day visit by the Minister of Commerce and Industry includes planned meetings with American Trade Representative Jaimison Greer and Commerce Secretary Howard Lutnik, which are to detect the route to carry forward the agreement.Indian markets bounce back
- According to a report by Bloomberg, after a huge return of over $ 25 billion from Indian equities between October and February, the business struggles and despite the stress volatility between India and Pakistan, investors have traveled a distance of over 2.5 billion in this quarter.
- While the Nifty Index made a multi-maiden contact between the global market slides on 7 April, it has since been cured within 5% of its September summit.
- The increase in follow-on share offerings in India is inspired by a recovery in domestic stock markets, running the amount of transactions at its highest point since August 2022.
- This speed has been conducted by Singapore Telecom Limited of Equity Divation of about $ 1 billion at Bharti Airtel Limited, marking the largest block transactions of the year in India.
- According to Bloomberg’s initial data, block transactions have moved ahead of $ 1.6 billion this week, reaching the levels not viewed since late August.
- The increase in deal activity has increased market liquidity on Indian exchanges. The total trading volume in the equity cash segment reached around $ 16 billion on Thursday, marking its highest level in about two months.
Why is India ‘Hot Trade’ again?Trinah Guyen, senior economist at Hong Kong Natics, said, “India can be a big winner of Trump 2.0, if he plays his card correctly,” has said Trinah Guyen, senior economist at Hong Kong Natics. “India offers both high yield in Bond and a civilized return to capital for equity investors,” Guyen told Bloomberg.Also read Donald Trump warns Apple about ‘Make in India’, will Tim Cook’s iPhone listen to the manufacturer?India’s appeal for investors stems from its position as a relatively stable option during global trade uncertainty, which is responsible for the domestic focused economy. Additionally, India’s low performance for US tariffs compared to Chinese imports this Apple Inc. Makes an attractive option for companies like.International investors are directing the huge capital in India, facilitating major corporate funding system, as investors estimate India’s possible success among Trump’s tariff tantrums.Indian businesses are capitalizing at this pace, the Shapoorji Pallaonji Group acquired a private credit system of $ 3.4 billion and Reliance Industries Limited. $ 2.98 billion-obtaining loan. This highlights the increasing interest of global investors in Indian corporate loans.It is renewed by many positive economic factors. The government aims to redeem a unique opportunity to strengthen India’s position in the global supply network. Additionally, the stance of the friendly policy of the Reserve Bank of India is increasing the confidence of the market, with low yields of bonds in three years. The RBI has already cut the repo rate by 50 basis points in this calendar year, experts have expected more cuts this year.Also read India’s real reason on Donald Trump’s trade terms is getting toughThe change of emotion between Franklin Templeton and Federated Hermes, including the people of Federated Hermes, has intensified the change between fund managers worldwide. According to the recent Bofa Securities Survey, domestic equity has become the top option for Asian fund managers investing in the entire region.“Amidst global trade uncertainties, India’s large domestic market, middle class climbing, and a business deal with the US will help global investors interested in Indian credit,” said Macro Strategist Wei Liang at DBS Group Holdings Limited, and a business deal with America.Despite positive indicators, some challenges persist. The recent increase in tension with Pakistan highlighted geopolitical weaknesses that could affect Prime Minister Narendra Modi’s infrastructure development schemes, which require adequate foreign investment in various sectors including solar energy and transport.Nevertheless, currently, the investment community takes care of India’s positive economic trajectory.Also read Big achievement! India overtook Japan to become the 4th largest economy in 2025; Will be the third largest by 2028
