Arabic version: سيتارامان تشير إلى السيولة في خروج المستثمرين من السوق الهندية

According to Cnbc, India Finance Minister Nirmala Sitharaman said the high level of liquidity in the country’s equity market has made it easier for foreign portfolio investors to exit. Speaking in an exclusive interview on the sidelines of the IMF-World Bank meetings in Bangkok on Friday, she said investors were “exiting easily” because of the ease of liquidity and availability, while maintaining that the Indian economy’s fundamentals were “fine.”

India’s key benchmark indexes have fallen nearly 12% since January, according to LSEG data, despite resilient economic growth through trade uncertainty and geopolitical shocks. Foreign investors have recorded record outflows from Indian equities, although domestic capital has continued to enter the market. Indian equity mutual funds have posted net inflows every month since March 2021, based on data released earlier this month by the Association of Mutual Funds in India.

Foreign portfolio investors have sold more than $33 billion of direct Indian equities so far this year, according to Indian depository firm NSDL. Multinational companies, private-equity funds and foreign investors have also been able to make partial or full exits at a premium. Indian initial public offerings raised a combined $60.4 billion between 2021 and 2025, with $37.7 billion, or 63% of proceeds, going to existing holders selling shares to the public, an EY report in August said.

Sitharaman said the movement of capital toward artificial intelligence and the United States was a concern. She identified fuel, fertilizer and the flow of capital as risks for India’s economy in 2027. She also said India would not be “hurt” by spillover from a burst in a global AI bubble because it had not received the AI-related investment flows seen in other jurisdictions. India was “no longer a laggard” in frontier technology, she said, adding that investment was being made in semiconductor manufacturing.