Branch² Intelligence
Nearly 60% of foreign inflows into India-focused funds withdrawn since 2024 peak: Report
Key takeaway
Foreign investors have pulled ~60% of inflows from India-focused equity funds since the 2024 peak, redirecting capital to US and European equities driven by AI investment opportunities.
- Step 1Foreign investors withdraw ~60% of funds from India-focused equity funds since 2024 peak, redirecting to US and European equities driven by AI opportunities.
- Step 2Sustained capital outflows pressure Indian equity valuations and INR, increasing import costs and reducing domestic liquidity.
- Step 3Indian SMEs face higher financing costs as banks tighten credit and equity capital becomes scarcer, while import-dependent SMEs see margin compression from INR depreciation.
Source: IN:Economic Times
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