India’s market regulator SEBI has been expanding the scope of ESG-related regulations for over a decade, making detailed Business and Sustainability Report disclosures mandatory for the country’s top 1000 listed companies since 2023.
“India is clearly earning its space in terms of allocations from global investors,” said Ralph Keitel, head of Fund Investments at Zurich-based responsAbility Investment, speaking to Reuters at the conclave.
“Fifteen to 20 years ago, India was a great space, but returns took longer,” Keitel said. Now he sees a stronger near-term case as well.
Investors also said the country’s appeal rests on its relative resilience at a time when global allocations are being reassessed across China, the United States and other emerging markets.
India’s economy is projectedto grow 6.5% in both fiscal years 2024-25 and 2025-26, according to the International Monetary Fund.
“Besides risk mitigation, ESG impact – having (a) good impact on communities adds value,” Neha Grover, South Asia Lead for Private Equity at IFC told Reuters. Grover added that India has become one of the most consistent emerging markets for profitable exits, supported by a strengthening initial public offering (IPO) pipeline.
ResponsAbility Investment‘s Keitel also pointed to climate-related opportunities as a core area of interest, citing sectors such as mobility and solar panels. As incomes rise, environmental pressures tend to intensify, he added.