SUMMARY

The article from The Financial Express, published on June 8, 2025, titled "Foreign Investors are under invested in India by a trillion dollars," highlights the significant under-allocation of global institutional capital to India.

Written by Arvind Chari, Chief Investment Strategist at Q India UK, Ltd, the piece notes that foreign investors hold less than 1% of their global portfolios in Indian public equities, despite India representing ~4% of global GDP and market capitalization.

With global assets under management (AuM) estimated at $300 trillion, of which $100 trillion is available for international investment, India’s share is disproportionately low at $842 billion in public equities as of December 2024, and around 2% including private equity, venture capital, real estate, and infrastructure.

Chari argues this represents a $1 trillion untapped opportunity, recommending a 5% allocation to India, which would equate to $5 trillion in foreign investments. He suggests that even a 5% reallocation of the $4 trillion potentially exiting the U.S. could bring $200 billion to India, emphasizing India’s high-growth market potential despite global underinvestment. The article is for educational purposes and not an investment recommendation.

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