Manish Kejriwal, Founder and Managing Partner of Kedaara Capital, delivered a significant address at the World Economic Forum in Davos 2026, asserting a clear shift in global capital from China towards India. Kejriwal highlighted India’s growing prominence as a premier investment destination, driven by evolving geopolitical dynamics and a robust domestic market. He noted the strategic realignment of “middle powers” and the impact of the “MAGA” agenda in the U.S., which encourages global capital to seek new homes outside traditional hubs.
While foreign institutional investors (FIIs) remain somewhat cautious due to currency volatility, particularly the rupee’s depreciation, Kejriwal emphasized that the fundamental “India story” remains compelling and secular. He pointed out that diminishing returns and regulatory challenges in China are increasingly prompting a pivot of pan-Asian funds, leading to a notable surge in capital inflow into India. This increased competition is making larger deals in the Indian market more expensive, with valuations now emerging as the primary constraint for successful deal-making, rather than a lack of inherent investor appetite.
Kejriwal revealed a clear trend among investors to accelerate exit activities while adopting a more conservative approach to entry valuations. He also observed that the impressive strength of India’s Initial Public Offering (IPO) market is largely sustained by formidable domestic capital. This includes significant contributions from Systematic Investment Plans (SIPs) and a rapidly growing retail public participation, which he believes is merely beginning to tap its vast potential.
Furthermore, Kejriwal highlighted a cultural shift among Indian business owners, where promoter exits are increasingly viewed as a sign of strategic acumen rather than a weakness. He anticipates that financial services and consumer sectors will continue to dominate investment landscapes, with promising opportunities also present in tech services and healthcare. However, he explicitly cautioned that the quality of management teams, ethical governance, and overall corporate integrity remain paramount concerns for astute investors navigating India’s dynamic economic environment. This comprehensive outlook from Davos solidifies India’s strengthening position on the global investment map as a magnet for capital.