DBS Bank chief executive Tan Su Shan has struck an upbeat note on India's external prospects, saying demand for foreign currency non-resident bank deposits remains a clear signal that overseas investors and savers still view the country as a credible destination for capital. Her remarks come at a time when foreign net sales have added pressure on the rupee and revived debate over how India can balance growth ambitions with currency stability.
FCNR Demand Signals
Tan said the strength of FCNR(B) deposits is important because it reflects confidence from non-resident Indians and global investors who continue to keep money linked to India despite near-term volatility in financial markets. FCNR(B), or foreign currency non-resident bank deposits, are often watched as a barometer of trust in the domestic banking system and broader macroeconomic outlook. Strong inflows into such deposits can help banks manage foreign currency liquidity and, in some cases, provide a cushion when external sentiment turns cautious.
Her comments are notable because they arrive against a backdrop of persistent capital outflow concerns across emerging markets, with India not fully insulated from global portfolio shifts. Foreign investors have periodically trimmed exposure to Indian equities and other risk assets as they reassess valuations, interest-rate expectations and the strength of the dollar. That has fed pressure on the rupee, which has faced bouts of weakness even as India has remained one of the faster-growing large economies.
Tan's assessment suggests that the more durable question for India is not whether capital will move in and out in the short term, but whether the country can continue to attract long-horizon money. In her view, the answer remains yes, provided India keeps deepening its investment case through policy stability, infrastructure build-out and a stronger export base.
FDI And Exports Matter
The DBS chief said India has significant potential to attract foreign direct investment, a point that has become central to the country's economic strategy as it seeks to move beyond reliance on domestic consumption alone. FDI is especially important because it tends to be more stable than portfolio flows and can bring technology transfer, manufacturing capacity and supply-chain integration. For India, that matters not only for growth but also for the balance of payments and the rupee's medium-term trajectory.
Tan also highlighted exports as a key lever for currency stability. A stronger export performance can generate steady foreign exchange earnings, reduce dependence on volatile capital inflows and support the external account. That argument has gained traction as policymakers look for ways to make India less vulnerable to swings in global risk appetite.
Her remarks align with a broader policy consensus that India must expand its manufacturing footprint, improve logistics and keep trade competitiveness intact if it wants to convert growth into durable external strength. In sectors such as automotive, electric vehicles and mobility, export readiness is increasingly seen as a strategic advantage, especially as global companies diversify supply chains away from concentrated production hubs.
India's Digital Edge
Tan also pointed to India's digital infrastructure and its positioning in artificial intelligence as reasons for optimism. India's digital public infrastructure, payments ecosystem and expanding technology talent base have become major selling points for investors evaluating the country's long-term competitiveness. In the AI race, India is increasingly viewed as a market with scale, data depth and engineering capacity, even if it still trails the United States and China in frontier model development.
For global banks and investors, that combination of digital scale and demographic depth matters. It supports the case that India can absorb capital productively, build new industries and sustain growth even when global conditions are less favourable. Tan's comments suggest that overseas confidence in India is not merely about macro resilience; it is also about the country's ability to participate in the next wave of technology-led economic expansion.
At the same time, the rupee's sensitivity to foreign selling remains a reminder that confidence alone does not eliminate external pressure. India will still need a steady pipeline of FDI, stronger exports and continued financial-market depth to keep currency volatility in check. Tan's message was ultimately one of cautious optimism: capital may ebb and flow, but the underlying investment case for India remains compelling if policymakers keep strengthening the economy's external foundations.