‘We Are Very Bullish About India’: World Bank Reaffirms Confidence in India’s Growth Amid Market Volatility

Last Updated:February 27, 2025, 16:21 IST

‘We are not worried about India’s growth at the moment. We are very bullish about India and will remain bullish,’ said Auguste Tano Kouame, the World Bank’s Country Director for India, at the Advantage Assam 2.0 Business Summit.

If somebody is worried about recent data, we would like to say that don’t worry. India is the shining light in the world, says Auguste Tano Kouame, the World Bank’s Country Director for India.

The World Bank has reiterated its strong confidence in India’s economic prospects, positioning the country as a prime destination for global investment despite recent stock market corrections and foreign fund outflows.

“We are not worried about India’s growth at the moment. We are very bullish about India and will remain bullish,” said Auguste Tano Kouame, the World Bank’s Country Director for India, at the Advantage Assam 2.0 Business Summit, according to Business Today.

Encouraging investors to focus on India’s long-term potential, he added, “If somebody is worried about recent data, we would like to say that don’t worry. India is the shining light in the world. If you are looking to invest, then come and invest here.”

FII Outflows And Stock Market Losses

Kouame’s remarks come at a time when Indian equities are facing significant pressure.

The Nifty 50 index has declined nearly 14 per cent from its all-time high in late September 2024, with February marking its fifth consecutive month of losses. If this trend persists, it could be the index’s longest losing streak since the July-November 1996 period, when it plunged over 25 per cent.

Foreign institutional investors (FIIs) have been net sellers since October, withdrawing around Rs 2 lakh crore ($24 billion) from Indian equities. Midcap and smallcap stocks have been hit particularly hard. The selling spree has continued into 2025, with FIIs offloading nearly Rs 1 lakh crore ($12 billion) worth of shares in the first 33 trading sessions of the year.

Experts attribute this exodus to rising bond yields in the US, which have made American assets more attractive.

Vipul Bhowar, Senior Director of Listed Investments at Waterfield Advisors, said, “FIIs are choosing the stability of US equities over Indian stocks.”

Economic Growth and Outlook

India’s GDP growth has moderated in recent months. The economy expanded by 5.4 per cent in the July-September quarter of 2024, marking the slowest growth in nearly two years. A slowdown in manufacturing, mining, and consumer spending has contributed to this weaker performance.

Despite these headwinds, India’s economic fundamentals remain strong, reinforcing its status as a promising long-term investment destination.

News business ‘We Are Very Bullish About India’: World Bank Reaffirms Confidence in India’s Growth Amid Market Volatility



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