DBS Bank Chief Executive Officer Tan Su Shan has strongly countered growing market apprehensions regarding foreign capital outflows from India, pointing to robust international demand for specialized dollar deposits as clear evidence of sustained global investor confidence.
Speaking on the resilience of the Indian financial ecosystem, Tan highlighted the strong uptake of Non-Resident External and Foreign Currency Non-Resident (FCNR-B) deposits across global markets. She noted that overseas capital continues to recognize India’s structural economic strengths, even as short-term portfolio flows experience volatility.
Key takeaways from the DBS chief’s commentary include:
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FCNR(B) Success as Proof of Faith: Strong inflows into dollar-denominated deposits show that foreign and diaspora investors remain eager to capture Indian yields without taking on underlying currency risk.
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Rupee Stability via FDI and Exports: Tan emphasized that maintaining long-term stability for the Indian rupee hinges on two core pillars: attracting direct foreign direct investment (FDI) into productive assets and scaling up export capacities.
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Singapore as a Regional Bridge: Singapore is uniquely positioned to act as a crucial financial conduit, bridging capital flows and strategic investments between North and South Asia into India’s growing market.
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Unlocking India’s Digital Advantage: Reaffirming India’s long-term upside, Tan highlighted that the country’s vast digital infrastructure and robust SME network—proven during systemic shocks like the pandemic—remain underappreciated global assets.
Rather than signaling a retreat, DBS views current capital shifts as part of normal market dynamics, asserting that India’s fundamental growth narrative remains firmly intact for global investors.
