Bank of America CEO Highlights Robust Interest in India Amid Market Volatility
MUMBAI: Interest in India remains strong despite recent market volatility, according to Vikram Sahu, CEO and country executive at Bank of America. He noted that corporate interest is unwavering, with strategic investors maintaining a long-term perspective driven by India’s scale, growth potential, and governance framework. Sahu also pointed out an uptick in investor sentiment, highlighted by a 30% increase in participation at the upcoming 2026 India conference.
Sahu addressed the current decline in foreign institutional investor participation, which has reached its lowest level in over a decade. He attributed this trend to high valuations that were prevalent about 18 months ago, which set a challenging benchmark for expectations. External factors, such as trade negotiations with the US and geopolitical tensions in West Asia, have also contributed to investor caution. He emphasized that these cycles are typical and tend to self-correct as conditions improve.
Trade-related concerns have eased with several agreements, including a framework with the US, while trade flows have remained stable. However, Sahu warned that uncertainties in West Asia continue to pose risks. He stated that a swift resolution of these issues could alleviate significant pressures, while prolonged instability would act as a headwind for investment.
From a banking perspective, Sahu sees substantial opportunities in manufacturing, which currently represents about 15% of GDP, with a target of 25%. He views this gap as a potential growth area, particularly in electronics manufacturing. Regarding foreign investment, Sahu noted that investors are selectively returning, focusing on companies with strong governance and earnings visibility. He identified two key triggers for a broader shift in investment sentiment: clarity on the West Asia situation and the conclusion of the earnings downgrade cycle. While he believes progress is being made, he acknowledged that the market is not fully through this phase yet.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
