World Bank’s Country Director for India, Auguste Tano Kouame’s remarks come at a time when India’s stock market has been under pressure, and its GDP growth has slowed
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The World Bank recently reaffirmed its strong confidence in India’s economy, calling the country a prime destination for global investment despite recent stock market corrections and foreign fund outflows.
“We are not worried about India’s growth at the moment. We are very bullish about India and will remain bullish,” World Bank’s Country Director for India, Auguste Tano Kouame, said while speaking at the Advantage Assam 2.0 Business Summit. He urged investors to look beyond short-term volatility and recognise India’s long-term potential.
“If somebody is worried about recent data, we would like to say that don’t worry. India is the shining light in the world. If you are looking to invest, then come and invest here. The Indian growth makes it the place to invest,” Business Today quoted him as saying.
Market pressures and FII outflows
Kouame’s remarks come at a time when India’s stock market has been under pressure.
Ahead of the market opening on Thursday (February 27), the blue-chip Nifty 50 index had sunk about 14 per cent from its all-time high in late September 2024. After five straight months of losses, including February, it is teetering on the edge of its longest losing streak since July-November 1996, when it plunged more than 25 per cent.
Since October, FIIs have withdrawn nearly Rs 2 lakh crore ($24 billion) from Indian equities, with midcap and smallcap stocks facing the steepest declines.
The trend has continued into 2025, with FIIs selling nearly Rs 1 lakh crore ($12 billion) worth of shares in the first 33 trading sessions of the year.
Experts attribute the sell-off to rising bond yields in the US, which have made American assets more attractive. “FIIs are choosing the stability of US equities over Indian stocks,” said Vipul Bhowar, Senior Director of Listed Investments at Waterfield Advisors.
Economic growth and outlook
India’s GDP growth has slowed in recent months, with the economy expanding by 5.4 per cent in the July-September quarter of 2024– the lowest in nearly two years. A slowdown in manufacturing, mining, and consumer spending contributed to the weaker performance.
Despite this, India’s broader economic fundamentals remain resilient.