Foreign investors withdraw $1 billion from Indian debt
Foreign investors just pulled out over $1.06 billion from Indian debt in June, keeping up a selling streak that started back in April.
Even though May saw a brief pause thanks to one big bond issue, the overall trend is still negative.
Why it matters
When foreign money leaves, it can make borrowing more expensive and shake up financial stability here at home.
These withdrawals are mostly about global worries—think trade tensions, slower growth worldwide, and higher US bond returns—which have made India less attractive for quick gains.
What's happening?
Most of the money left through short-term routes as investors look for safer bets and expect better liquidity after the RBI's upcoming cash reserve ratio cut.
Still, currency swings and a shrinking gap between Indian and US bond yields are making long-term Indian debt less appealing to foreign investors right now.