Foreign investors withdrew $16.4B from India in FY2025-26, shrinking reserves
Business
Foreign investors just pulled $16.4 billion out of India in FY2025-26, flipping the previous fiscal year's (FY2024-25) positive trend and shrinking the country's foreign exchange reserves by $23.6 billion.
This big exit has also pushed foreign holdings in Indian stocks to their lowest point since 2016, showing that confidence among global investors is definitely shaky right now.
India direct investment jumped to $6.9B
While portfolio investment took a hit, direct investment into India actually jumped to $6.9 billion from just $1 billion in FY2024-25.
Plus, India saw a boost in money coming from services and personal transfers, helping cushion some of the impact from those investor exits on the economy.