President-elect Donald Trump will come into the White House amid an international environment where multiple major conflicts around the world have greatly intensified, according to two Indiana University foreign affairs experts.
The sum - around $850 billion in total last year for both foreign and local debt - is forcing countries to divert money from domestic spending on hospitals, roads and schools while raising risks for emerging-market investors.
Switzerland has suspended most-favored-nation status for India under their tax treaty, but Indian officials say the immediate trade impact will be minimal. The move raises concerns about investment flows under the European Free Trade Association agreement, which includes a $100 billion investment commitment from EFTA nations to India over 15 years.
IMD Business School President David Bach foresees the US adopting a transactional approach with India under Trump, while maintaining strategic partnership against China. India stands to benefit from the 'China-plus one' strategy as businesses diversify. Bach emphasizes India's need to improve managerial practices and productivity for sustained growth.
Foreign portfolio investors (FPIs) turned net buyers in Indian equities in 2024, investing $982.6 million as of December 13. Strong primary market investments offset substantial secondary market selling. FPIs poured $1,703.4 million into the secondary market in early December, reversing the November trend. Meanwhile, domestic mutual funds slowed their investment pace.
