India sees record FPI outflows, ₹1.6 lakh cr withdrawn in 2025

Foreign investors pulled out a record ₹1.6 lakh crore ($18 billion) in 2025. This comes on the back of volatile currency movements, global trade tensions, especially US tariffs, and stretched valuations that eroded risk appetite for investors. "We expect FPIs to return sustainably in India as nominal growth and earnings pick up in CY26," an analyst said.