DBS Bank chief executive Tan Su Shan said overseas investors and depositors continue to show confidence in India, even as the country faces pressure from foreign capital outflows and a softer rupee. Speaking in a broad assessment of India's economic prospects, Tan highlighted the strong demand for foreign currency non-resident bank deposits, or FCNR(B) deposits, as evidence that global Indian households and investors still view the market as a credible destination for savings and long-term engagement.
Deposit Demand Signals
Tan's remarks come at a time when India is navigating a familiar but consequential tension: robust domestic growth and structural reform on one side, and periodic volatility in capital flows on the other. Foreign net sales in Indian markets have recently added to currency pressure, underscoring how quickly global risk sentiment can affect the rupee. Against that backdrop, the resilience of FCNR(B) inflows stands out because these deposits are typically used by non-resident Indians to park foreign currency in Indian banks, making them a useful barometer of confidence in the banking system and the broader economy.
Her comments suggest that while portfolio flows may be fickle, longer-duration confidence remains intact. That distinction matters for policymakers and lenders alike. Portfolio investors can exit quickly when global rates rise or geopolitical risks intensify, but deposit flows and direct investment tend to reflect deeper judgments about macroeconomic stability, banking credibility and medium-term growth potential. Tan's framing implies that India continues to attract that deeper trust, even in a period of currency weakness.
FDI And Export Push
Tan also stressed the importance of encouraging foreign direct investment and exports as a way to stabilize the currency over time. That view aligns with a broader policy consensus in India: durable external balance cannot rely solely on volatile portfolio inflows. It requires a steady pipeline of productive capital, stronger manufacturing competitiveness and a larger export base that can generate foreign exchange earnings.
For the automotive and mobility sector, the implication is significant. India is trying to position itself not only as a large consumer market but also as a manufacturing and technology hub for vehicles, electric mobility components and associated supply chains. If FDI accelerates, it could support capacity expansion, localization of advanced components, and deeper integration into global automotive value chains. That would be especially relevant for electric vehicles, where capital intensity, battery ecosystems and software capabilities are reshaping competitive advantage.
Tan's emphasis on exports also resonates with the EV transition. India's mobility industry is increasingly dependent on imported critical inputs, from battery materials to specialized electronics, even as domestic firms push to scale production. A stronger export orientation could help offset import dependence and improve the sector's external balance, while also strengthening the rupee through higher foreign exchange earnings.
AI And Digital Edge
Beyond the immediate currency debate, Tan pointed to India's advantageous position in artificial intelligence and its strong digital infrastructure as reasons for optimism. That is a notable assessment from a global banking executive because it links financial confidence to the country's broader technology base. India's digital public infrastructure, large developer talent pool and expanding enterprise adoption of data-driven tools have made it one of the more closely watched markets in the global AI race.
For investors, the significance lies in productivity. AI adoption could help Indian companies improve logistics, manufacturing efficiency, customer service and financial inclusion, all of which can feed into stronger growth and higher-quality investment opportunities. In the mobility sector, AI is already influencing vehicle software, fleet management, predictive maintenance and autonomous systems development. Tan's comments therefore place India's digital strengths within a wider industrial context, suggesting that technology leadership may become a competitive advantage across sectors rather than a standalone story.
Her optimism is notable because it does not dismiss the pressure points. The rupee remains vulnerable when global investors sell Indian assets, and external volatility can complicate monetary management. But Tan's central argument is that India's structural story remains intact: strong domestic demand, improving digital rails, a credible banking system and a growing case for foreign capital that is tied to production, exports and technology rather than short-term trading flows.
For now, that is the message from DBS's leadership: capital outflow concerns are real, but they do not outweigh the evidence of overseas confidence in India's long-term trajectory.