The United States will have the highest share of foreign portfolio investors (FPIs) investing in India in fiscal year 2023-24, according to a report by the Securities and Exchange Board of India (SEBI).

The report further added that the total number of FPIs registered in India was 11,219 as of March 31, 2024. This represents a slight increase from the previous year when the number was 11,081. Of the total registered FPIs, the United States led with 3,457 investors.

The SEBI report highlighted the distribution of FPIs across different countries. The United States topped the list with 3,457 registered FPIs, followed by Luxembourg with 1,393 and Canada with 804.

The report provided a detailed analysis of the country-wise distribution of FPIs, including their assets under management (AUC). AUC refers to the total value of assets managed by these FPIs and held by custodians.

According to the report, “As of March 31, 2024, there were 11,219 FPIs registered in India from various jurisdictions. The highest number of registrations were in the United States (3,457), followed by Luxembourg (1,393) and Canada (804).”

In terms of assets, the report highlighted a significant increase in the AUC value. As of March 31, 2024, the AUC of FPI custodians grew by 42.8 percent to ₹69.5 lakh crore, compared to ₹48.7 Lakh Crore as on March 31, 2023. This increase underlines the growing confidence of foreign investors in the Indian market.

The report also revealed that equity assets accounted for 92.2 percent of total assets under management. The highest contributors to this equity assets came from the US, which accounted for 39.2 percent of total assets, followed by Singapore at 9.8 percent and Luxembourg at 7.1 percent. This robust growth in assets under management, especially equity assets, reflects the increasing interest and confidence of foreign investors in India’s financial markets.

The SEBI report also revealed that foreign portfolio investment (FPI) in India during 2023-24 was the highest since 1992-93. It added that foreign portfolio investment and foreign venture capital investment are crucial for emerging economies like India. The financial year 2023-24 has been an exceptional year for India in terms of foreign portfolio investment flows.

India’s continued robust growth, financial stability, containment of inflation, fiscal consolidation coupled with persistent inflation in advanced economies, uncertain geopolitical scenarios, etc. led to a record influx of foreign investors into India.