Foreign Portfolio Investors (FPIs) withdrew a net Rs 4.58 lakh crore from Indian equities between Oct 2024-Apr 2026, according to Finance Ministry data. The debt market, however, saw net inflows. The outflows were part of a broader emerging market trend.
Foreign Portfolio Investors (FPIs) withdrew a net Rs 4.58 lakh crore from Indian equities between October 2024 and April 2026, with the government attributing the outflows to a combination of domestic and global factors, including geopolitical tensions, trade tariff uncertainties, currency movements and portfolio rebalancing by global funds.
Equity Outflows vs Debt Inflows
According to data provided by the Ministry of Finance in the Rajya Sabha on Tuesday, the equity segment recorded a cumulative net outflow of Rs 4,58,438 crore during the period from October 1, 2024, to April 30, 2026.
In contrast, the debt segment saw a net inflow of Rs 72,701 crore during the same period.
The government said the recent foreign portfolio outflows from Indian equities were part of a broader pattern seen across emerging markets and were not entirely specific to India. The data showed that net FPI flows into Indian equities stood at Rs 2,08,212 crore in 2023-24, before turning negative in subsequent financial years. Equity flows recorded a net outflow of Rs 1,27,041 crore in 2024-25 and Rs 1,80,832 crore in 2025-26. In the current financial year 2026-27, equity markets have recorded a net FPI inflow of Rs 25,807 crore up to July 13, 2026. The debt segment recorded net inflows of Rs 1,18,087 crore in 2024-25, Rs 1,43,162 crore in 2025-26 and Rs 56,694 crore in 2026-27 up to July 13.
Government's Stance on FDI and FPI
Responding to concerns over India's reliance on foreign portfolio flows amid declining net Foreign Direct Investment (FDI), the government said FDI enhances the country's productive capacity and employment, while FPI complements FDI by deepening financial markets and improving access to capital.
Rising Strength of Domestic Investors
The government also highlighted the growing strength of domestic institutional investors (DIIs), including mutual funds, Alternative Investment Funds (AIFs), insurance companies and pension funds.
According to data cited by the government, assets under management of the mutual fund industry more than doubled from Rs 33.67 lakh crore as of June 2021 to Rs 82.22 lakh crore as of June 2026. Similarly, investments made by AIFs rose from Rs 2 lakh crore as of March 2021 to Rs 6.76 lakh crore as of March 2026.
The government said regulators, including SEBI, IRDAI and PFRDA, have put in place regulations to support the orderly growth of the domestic institutional investor segment. (ANI)
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