International investors are showing a growing interest in India, Stefan Hofer, MD & Chief Investment Strategist, LGT Bank Asia, told CNBC-TV18 while sounding an alarm on valuations.

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“We have to recognise that international investors are increasingly very excited about India. So the combination of structural reforms plus the ongoing boom in infrastructure means that valuations could be a little high right now..," Hofer said in an interview on October 6.

However, he said investors are looking through that basically on the idea that "...the next 3-5 years could see a structural uplift in terms of India’s potential GDP growth rate and that makes it still a very good buying opportunity right now.”

The Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) retained its projection for India's GDP at 6.5% for the 2023-24 fiscal, Governor Shaktikanta Das announced on October 6, Friday.

Hofer said the structural story in the Asian context is quite compelling. Especially with China's economy showing signs of slowing down and potential opportunities dwindling in other parts of the region, India stands out as an attractive investment destination.

Also Read | Ten reasons why the RBI believes the Indian economy will grow faster than World Bank estimates

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(Edited by : Shweta Mungre)

First Published:Oct 6, 2023 4:16 PM IST