In the May 2025 Bank of America survey, India emerged as the most preferred investment destination among Asia-Pacific fund managers. Just two months ago, it was underweighted by 13%; now it leads with a 42% net overweight. The surge reflects India’s economic resilience, manufacturing growth, and rising global investor confidence amid shifting global trade patterns.

BulletsIn

• India now most overweight market in Asia-Pacific at 42%
• Sharp jump from -13% in March 2025
• Japan falls to second place with 39% net overweight
• China distant third with just 6% net overweight
• Fund managers drawn to India’s fast-growing, diversified economy
• India seen benefiting from China+1 supply chain shift
• Production-Linked Incentive scheme boosting manufacturing appeal
• Tariff war resilience made India more attractive
• Survey done before US-China tariff thaw (May 2–8)
• China inflows may rise short-term, but India gains long-term