ETMarkets Smart Talk | Don’t mistake FII outflows for a loss of confidence in India’s growth story: Himanshu Srivastava

May 28, 2026

Foreign investors withdrew almost $5 billion from India funds in March 2026. This outflow stemmed from global uncertainty and high valuations. Experts believe this is not a loss of faith in India’s growth. Domestic investors showed resilience. Passive investing is growing, but active management remains key. Currency movements also influence decisions. India’s long-term growth story remains strong.

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