DBS Bank chief executive Tan Su Shan said overseas confidence in India remains resilient, pointing to strong demand for foreign currency non-resident bank deposits as evidence that global investors and the Indian diaspora continue to see value in the country's growth story, even as capital outflow pressures have unsettled the rupee.
Speaking in the context of India's broader economic trajectory, Tan said the country's fundamentals remain compelling for long-term investors. She highlighted the scale of opportunity in foreign direct investment, the strength of India's digital infrastructure and the country's emerging position in artificial intelligence as factors that could keep global capital interested despite short-term market volatility.
Overseas Demand Holds
Tan's comments come at a time when the rupee has faced pressure from foreign net sales and broader global risk aversion. In that environment, demand for FCNR(B) deposits has taken on added significance. These deposits, held by non-resident Indians in foreign currency, are often viewed as a barometer of confidence among overseas Indians and a useful source of foreign currency funding for the domestic banking system.
Her remarks suggest that while portfolio flows may be fickle, the underlying relationship between India and its global investor base remains intact. That distinction matters for policymakers and markets alike. Short-term outflows can weaken the currency and tighten financial conditions, but stable deposit inflows and direct investment commitments can provide a more durable cushion.
Tan's assessment also reflects a broader view shared by many international bankers: India's growth narrative is no longer dependent on a single sector or cyclical rebound. Instead, it is being supported by a combination of consumption, digital adoption, manufacturing ambitions and services exports. For a bank with a significant regional footprint, that mix makes India both a financing opportunity and a strategic market.
FDI And Exports Matter
Tan said India should continue to promote foreign direct investment and exports as a way to support currency stability. That view aligns with a long-standing policy challenge: while India has attracted substantial inflows into manufacturing, technology and services, the economy still depends heavily on portfolio capital and external financing at the margin. When foreign investors sell Indian assets, the rupee can come under pressure even if domestic demand remains firm.
Encouraging more FDI would help reduce that vulnerability by bringing in longer-term capital tied to factories, supply chains, technology transfer and jobs. Exports, meanwhile, remain critical because they generate foreign exchange earnings that can offset import bills and reduce pressure on the currency. In sectors such as automotive components, electric vehicles and mobility technologies, export competitiveness could become increasingly important as India seeks to move up the value chain.
Tan's comments are particularly relevant for the automotive and EV ecosystem, where global capital is closely watching India's manufacturing capacity, policy stability and digital readiness. The sector is capital intensive and increasingly dependent on advanced software, battery technologies and connected systems. That makes India's digital infrastructure and AI readiness more than a macroeconomic talking point; they are part of the investment case.
India's Digital Edge
Tan also underlined India's advantage in artificial intelligence, suggesting that the country is well placed to benefit from the next wave of technology-led growth. India's large talent pool, expanding cloud and data infrastructure, and deepening digital public platforms have already made it a major market for fintech, software and enterprise services. The same capabilities are now being viewed as enablers for industrial automation, smart mobility and next-generation manufacturing.
For investors, that creates a dual narrative. On one side is the near-term challenge of currency volatility and external flows. On the other is a structural story of rising productivity, formalisation and digital scale. Tan's remarks indicate that global institutions are still willing to look through temporary market stress if they believe the medium-term growth engine remains intact.
Her optimism is notable because it comes amid a period when many emerging markets are grappling with tighter global liquidity, stronger dollar dynamics and uneven capital allocation. In that setting, India's ability to attract both diaspora deposits and strategic foreign investment may prove crucial. The message from DBS is clear: confidence has not disappeared. It has simply become more selective, and India still appears to be on the shortlist for global capital seeking growth, scale and resilience.