Can India remain the preferred emerging market for foreign investors? (opens original article in a new tab)

Foreign investors have significantly reduced investments in India's market due to global economic factors, but the country's growth outlook remains positive.

• Foreign portfolio investors have withdrawn ₹2.6 lakh crore from India's capital market as of June 12, 2026
• India's economic growth outlook remains healthy with a 6.6% forecast for 2026-27
• India's equity valuations are at a 40% premium to the MSCI EM Index, making it vulnerable during risk-off periods
• India's forex reserves stand at $682.3 billion, sufficient for 11 months of imports