Against this backdrop, Zerodha co-founder Nithin Kamath, in a post on X, flagged multiple structural concerns that could be dampening foreign investor interest in India. He added, based on the feedback, that if India wants to attract FPIs back — which it needs to — addressing these issues could be relatively low-hanging fruit. Higher yields have improved the relative attractiveness of dollar-denominated assets, prompting capital to move away from emerging markets such as India. In FY26 so far, they have withdrawn ₹1.77 lakh crore, crossing the total outflows of ₹1.66 lakh crore in 2025. In March alone, they withdrew ₹1.17 lakh crore, marking the highest monthly FPI selling on record, implying an average daily outflow of around ₹6,198 crore.

Source: Mint April 09, 2026 17:29 UTC