India Attracts Global Investors Amid Strong Returns and ESG Progress

SNN – India is increasingly gaining attention from global investors who consider environmental, social, and governance (ESG) factors, with fund managers highlighting the country’s economic scale, improving returns, and stronger ESG standards as key drivers of investment interest.

Speaking at the Indian Venture and Alternate Capital Association conclave in Mumbai, investment managers said India has become a more mature and attractive market for international portfolios.

India’s market regulator, Securities and Exchange Board of India (SEBI), has gradually expanded ESG-related regulations over the past decade. Since 2023, the country’s top 1,000 listed companies have been required to publish detailed Business and Sustainability Reports, increasing transparency for investors.

Ralph Keitel, head of Fund Investments at Zurich-based responsAbility Investment, said India is steadily gaining a larger share of global investment allocations.

“Fifteen to twenty years ago India was already promising, but returns often took longer to materialize,” Keitel said, adding that the investment case for India is now stronger in the near term.

Investors also point to India’s economic resilience at a time when global investment strategies are being reassessed across major markets including China and the United States.

According to the International Monetary Fund (IMF), India’s economy is expected to grow by 6.5% in both the 2024–25 and 2025–26 fiscal years.

Neha Grover, South Asia lead for Private Equity at the International Finance Corporation (IFC), said ESG-focused investments not only reduce risk but also create positive social and environmental impacts that add long-term value.

She also noted that India has become one of the more consistent emerging markets for profitable investor exits, supported by a growing pipeline of initial public offerings (IPOs).

Investors highlighted climate-related sectors as promising opportunities, particularly electric mobility and solar energy, as rising incomes increase demand for sustainable infrastructure and solutions.