India's new fast-track entry route for trusted foreign investors has demonstrated strong early adoption, with 164 registrations recorded in just over 100 days since its launch on June 1, according to data from the Indian depository. The Single Window Automatic and Generalised Access for Trusted Foreign Investors (SWAGAT-FI) framework was introduced as part of efforts to attract more stable foreign investment, with early registrations signaling adoption by sovereign wealth funds and pension funds among other institutional investors.
The new route specifically targets a select category of foreign portfolio investors considered low risk, including sovereign wealth funds, pension funds, insurance companies and regulated public retail funds that account for 70% of total foreign investment in India. Under the framework, investors receive a 10-year registration period instead of the earlier 3-year cycle applicable to FPIs, sharply reducing renewal-related paperwork and compliance costs for large long-term investors. As reported by Reuters, the early registrations include investment structures linked to some of the world's largest asset managers, including BlackRock, Vanguard, State Street and Franklin Templeton.
Despite the strong early adoption, overseas ownership of local equities remains at a 17-year low and the rupee continues to perform among Asia's weaker currencies this year. According to Reuters data, foreign investors have added a net ₹70,200 crore ($7.34 billion) to Indian equity markets till August-end, before sentiment weakened again in September with foreign investors pulling out ₹27,810 crore so far. The registration data shows interest from institutional investors including Korea Investment Corporation - South Korea's sovereign investment pool, Malaysian pension funds, and other government-related investors, with a separate route for government bond funds also receiving interest from South Korea's state-run pension fund. Reuters reports that Dutch hedge fund Allianz Europe B.V. has also registered under this route.
