China's positive GDP growth rate may take a bite out of India's FPI flows

China's economy grew 3.2% in the second quarter, following a slump of 6.8% in the first, according to its National Bureau of Statistics

The IMF has projected a positive GDP growth rate for China in CY20, while estimating a 4.5 per cent contraction for India this financial year.

China’s economy grew 3.2 per cent in the second quarter, following a slump of 6.8 per cent in the first, according to its National Bureau of Statistics. This was driven by its success in controlling the outbreak and policy support from the government. Various agencies have pegged India’s FY21 growth between 1.3 per cent and -9.5 per cent.

The difference in growth rates could have implications for foreign investment and skew emerging market (EM) portfolio