Citigroup chooses India as a higher priority market over China

The co-head of Citigroup Inc.'s international investment banking unit said the bank views India as one of its top markets to expand its global footprint amid rising expansion risks in China and other regions.

In an interview in Mumbai, Manolo Falco, co-head of international banking, capital markets and advisory, said India represents a clear opportunity for the company. He said the New York-based lender expects an increased initial public offering in India next year, as well as incoming deals in renewable energy and infrastructure.

Interest in the world's second most populous country is also growing because rising political tensions are casting doubt on major expansion plans in China and increasing tensions in Europe and the U.S. India's stock fundamentals have risen this year, but the world's major stock markets have fallen sharply. The country saw a record number of mergers and acquisitions in the second quarter, while other countries saw declines. In India, mergers and acquisitions amounted to $82 billion.

Falco said India looks fairly stable thanks to a government that always has a clear plan of action in any situation.