India requires key reforms for greater foreign investment

India is seen as a strong option for foreign investors, with around $750-800 billion in foreign portfolio investments (FPI) in its listed companies. Nilesh Shah, Managing Director of Kotak Mahindra Asset Management, believes that to increase economic growth, India needs to implement major reforms in areas like land, labor, and the judicial system. Despite its potential, India is currently experiencing mid-single-digit GDP growth. Shah notes that the country has made improvements in its business environment, but more work is needed. He points out that without bold policy changes, India may struggle to reach higher growth rates. Shah emphasizes that for India to attract more capital, its growth rate must improve. He argues that investors will keep supporting India as long as the country continues to show growth. He also mentions that India's attractiveness can be influenced by global trends, including the mistakes made by other countries. In summary, while India is already a popular destination for foreign investment, the focus now should be on making necessary reforms to boost economic growth further.