Foreign portfolio investments and Indian rupee staged a comeback with investor sentiments turning around following the India-EU free trade agreement and the interim India-US trade deal, RBI noted in its monthly bulletin. The completion of the India-EU free trade negotiations in end-January and the subsequent interim trade agreement between India and US are likely to play a significant role in the coming years by improving market access, enhancing export competitiveness, and integrating Indian firms more deeply into global value chains. In the immediate term, it has led to a change in investor sentiments. Foreign portfolio investment into equity and debt segment staged a comeback in February, the central bank noted.
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