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 still view the country as an attractive destination for savings and capital. Her remarks come at a time when foreign net sales in domestic markets have added pressure to the rupee, reviving debate over how India can better balance capital inflows and outflows.
Overseas Confidence Holds
Tan's comments underscore a nuanced view of India's external financing position: while portfolio flows can turn volatile, longer-term confidence appears intact. FCNR(B) deposits, which allow non-resident Indians to park foreign currency funds in Indian banks, are often watched as a barometer of trust in the banking system and the broader macroeconomic outlook. Strong appetite for these deposits suggests that overseas Indians continue to see India as a credible store of value, even amid global uncertainty and currency swings.
Her assessment is significant because it separates short-term market pressure from structural confidence. Foreign investors have recently been net sellers in Indian equities, a trend that can weaken the rupee and complicate policy choices. Yet Tan's view indicates that the underlying story is not one of capital flight from India, but of shifting flows across asset classes as investors respond to global rates, valuation concerns and risk appetite.
FDI And Export Push
Tan also highlighted the importance of encouraging foreign direct investment and exports to support currency stability. That argument reflects a broader policy reality: India cannot rely indefinitely on volatile portfolio inflows to finance growth and external needs. Durable FDI, by contrast, brings in long-term capital, technology transfer, supply-chain integration and employment creation. Exports, meanwhile, generate foreign exchange earnings that can help cushion the rupee against periods of market stress.
For India's automotive, EV and mobility ecosystem, this message carries particular weight. The sector is capital intensive, import dependent in key components, and increasingly tied to global supply chains. A stronger FDI pipeline could accelerate investment in manufacturing capacity, battery ecosystems, charging infrastructure and software-defined mobility. Export growth would also help domestic manufacturers scale beyond the home market, especially as global buyers diversify sourcing away from concentrated production hubs.
Tan's remarks align with the government's broader push to position India as a manufacturing and technology destination. In mobility, that means not only assembling vehicles domestically but also building an ecosystem that can compete on design, electronics, software and clean-energy integration. The ability to attract foreign capital into those layers will be central to whether India can move from being a large consumer market to a deeper industrial base.
AI And Digital Edge
Tan also said India is well placed in the artificial intelligence era, citing the country's digital infrastructure as a strategic advantage. That view reflects growing recognition that India's scale in digital payments, identity systems and software talent gives it a platform to absorb and deploy AI more quickly than many peers. For banks, manufacturers and mobility companies alike, AI is increasingly becoming a productivity tool, a customer interface and a supply-chain enabler.
Her optimism suggests that India's growth narrative is no longer being judged only through the lens of macro stability, but also through its capacity to adopt frontier technologies. In the automotive and EV space, AI is already influencing vehicle software, predictive maintenance, battery analytics, logistics optimization and autonomous systems development. A country that can combine digital rails with industrial ambition may be better positioned to attract strategic capital from global firms seeking scale and resilience.
Still, Tan's comments also carry an implicit warning: confidence alone will not stabilize the currency unless it is converted into sustained investment and trade performance. India's policy challenge is to channel overseas trust into productive capital, deepen export competitiveness and reduce vulnerability to episodic foreign selling. The rupee's direction will continue to reflect global conditions, but the strength of India's long-term story may depend on whether policymakers can turn that confidence into lasting inflows.
For now, DBS's chief is signaling that the market's short-term anxiety should not obscure the larger picture. Overseas investors may be trimming risk in the near term, but the demand for India-linked deposits, the appeal of its digital economy and the promise of its manufacturing base suggest the country still commands attention well beyond its borders.