Foreign Investors Sell $29.5B in Indian Equities but Gross FDI Rises 13% to $90B
Sales exceed the $18.9 billion recorded for all of 2025. The Reserve Bank of India raised its inflation forecast and lowered its growth outlook last Friday.
focustaiwan.twCom reported. 9 percent last Friday. com reported.
Net FDI fell to a near all-time low as foreign firms repatriated capital and Indian companies increased overseas investment. India imports more than 85 percent of its crude oil. Higher global oil prices and a weaker rupee have increased costs for consumers.
Last Friday the government exempted capital gains tax for foreign investors in the Indian bond market. "India is no longer the obvious, one-way growth story investors assumed it was a few years ago," Alexandra Hermann Prasad, lead economist at Oxford Economics, said.
She added that the economy remains strong by global standards but faces headwinds from weaker consumption, fragile investment sentiment, higher energy costs and more selective global capital.
"I think it helps the mood music, but it doesn't change the symphony," Stephen Davies, chief executive and founder of Javelin Wealth Management, said. " According to the CSIS India reforms scorecard, the government has finalized only two of 30 big reforms in the last two years.
"Land acquisition processes and legal remediation of disputes have not measurably improved," Richard Rossow, senior adviser and chair on India and emerging Asia economics at CSIS, said.
Labor regulations improved only marginally, and access to reliable, reasonably priced electricity and water remain core challenges to India's industrialization goals, he added. Economist Surjit Bhalla, a former member of the prime minister's Economic Advisory Council, said Modi's political party should use the economic stress of the Middle East crisis to push through reforms.
Prime Minister Narendra Modi addressed the AI Impact Summit in New Delhi on February 19, 2026.
He is in his 12th year as prime minister.
