The ongoing war in West Asia has prompted investors to reconsider geopolitical risks in their investment strategies. Keiko Honda, a board member at Mitsubishi UFJ Financial Group and former CEO of the World Bank Group’s Multilateral Investment Guarantee Agency, noted that this shift in perspective favors India, which is perceived as more stable compared to regions like the Middle East and Eastern Europe. As India transitions to a middle-income economy, it has become less reliant on multilateral aid, attracting more foreign direct investment (FDI). Honda emphasized that while India’s demographic trends are advantageous, the continuation of capital inflows will depend heavily on corporate governance and the ability of boards to focus on long-term value creation. She pointed out that the 'social' aspect of Environmental, Social, and Governance (ESG) criteria now plays a vital role in how investors assess countries and companies, particularly in the context of geopolitical instability. Honda also expressed optimism about India’s financial sector, noting ongoing interest from overseas financial institutions. However, she cautioned that even if current conflicts ease, the investment landscape will not revert to previous norms, as heightened awareness of geopolitical risks will likely keep risk premiums elevated.