The second quarter of 2024 has marked a remarkable turnaround for institutional investments in India, with total inflows reaching USD 3.1 billion. This figure represents an impressive 96% increase compared to the same quarter last year and a staggering 464% rise from Q1 2024. As global economic conditions stabilise amidst ongoing geopolitical challenges, investor confidence in India’s growth potential has soared, leading to the highest quarterly institutional investments since the pandemic began.
Foreign investors played a pivotal role in this investment surge, accounting for 71% of the total inflows in Q2 2024. Their enthusiasm for India’s resilient economic trajectory has been a driving force behind this influx. In contrast, domestic investors contributed around 20% of the total investments, down from 98% in the previous quarter. However, in terms of value, domestic investments still recorded an 18% increase compared to Q1 2024, demonstrating their ongoing commitment to the market. The Industrial and Warehousing sector emerged as a key beneficiary of this investment wave, buoyed by a landmark USD 1.5 billion transaction involving the Abu Dhabi Investment Authority (ADIA), KKR, and Reliance Retail Ventures Limited (RRVL). This significant deal accounted for 48% of the total investments in Q2 2024. Residential and commercial assets followed closely behind, comprising 24% and 20% of the investment shares respectively. Notably, the commercial segment experienced a 56% year-on-year decline in value, primarily due to a major deal between GIC and Brookfield that occurred in Q2 2023.
Multi-city transactions dominated the investment landscape, capturing 61% of total investments in the quarter. Mumbai and Hyderabad emerged as leading investment destinations, securing shares of 13% and 12% respectively. Key players in this investment surge included KKR, ADIA, GIC, Xander, Blackstone, Mitsui, Nisus Finance, the SWAMIH Fund, and HDFC Capital, underscoring their active involvement in India’s expanding investment market. This surge in institutional investment not only highlights the resilience of India’s economic landscape but also sets a promising precedent for future growth, reinforcing the country’s position as a formidable destination for global investors.
