Foreign investors bought fewer Indian securities in FY26. Outflows increased as West Asia conflict escalated. Economists predict muted flows in FY27 due to the Gulf conflict and a weaker rupee. Concerns over government finances also impacted sentiment. A major trigger like bond index inclusion is needed for significant inflows.
No need for a rate hike unless inflation spikes: Economists
Bank economists have told the Reserve Bank of India that there is no immediate need to raise the repo rate or change the monetary policy
April 2, 2026