Lok Sabha Question No. 103 (UNSTARRED), answered on 2025-12-01
Subject: Foreign Portfolio Investors(FPIs) Outflow
Ministry: FINANCE
Asked by: Shri Suresh Kumar Shetkar

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION No. 103

## ANSWERED ON MONDAY, DECEMBER 1, 2025 /AGRAHAYANA 10, 1947 SAKA

## FOREIGN PORTFOLIO INVESTORS (FPIs) OUTFLOW

## 103. SHRI SURESH KUMAR SHETKAR:

Will the Minister of FINANCE be pleased to state:

- a) Whether it is a fact that Foreign Portfolio Investors (FPIs) withdrawn over 12,569 crore in November and more than 1.5 lakhs crore in 2025 till date;
- b) if so, the details thereof along with the reasons for this persistent capital flight despite claims of strong economic fundamentals;
- c) whether it  is  true  that  foreign  investors  are  losing  confidence  in  India's  markets  while  peer  Asian economies continue to attract inflows and if so, the details thereof along with the reasons as to why corrective measures have not yet restored investor confidence;
- d) whether  it  is  true  that  experts  have  describe  India  as  an  'AI -underperformer  and  whether  the Government accept that its policies or communication may have created this perception steps being taken by the Government in this regard;
- e) if so, the details thereof along with the corrective measures;
- f) whether it is a fact that despite mid-cap companies showing/reporting better earnings, FPIs are still withdrawing funds from Indian equalities; and
- g) if so, the details thereof and if not, the reasons as to why Government policies are failing to inspire investor's confidence?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY)

(a)  to  (c):  The  FPI  net  investments  in  Calendar Year  2025  in  debt  category  has  seen  strong  positive momentum with net inflows of around ₹74,515 crore. In addition, hybrid instruments, mutual funds and AIFs have also registered  net inflows  amounting to  ₹ 3,009  crore. Equity segment has recorded  a net outflow of ₹147,383 crore. Foreign Portfolio Investment (FPI) flows are dynamic and fluctuate depending upon  various  factors  such  as  geopolitical  tensions,  uncertainties  surrounding  trade  tariffs,  currency movements and portfolio rebalancing by global funds across emerging markets. The recent FPI outflows from Indian equities are part of broader pattern noticed in emerging markets in Asia and not specific to India alone. Several Asian markets viz., Vietnam, Malaysia, South Korea, Taiwan and Thailand have also seen selling by foreign portfolio investors.

(d) and (e): Recent rankings place India among top countries in AI skills, capabilities, and policies to use AI. India is also the second-largest contributor to GitHub AI projects, showcasing its vibrant developer community. IndiaAI mission is a strategic initiative to establish a robust and inclusive AI ecosystem aligned with India's development goals through the seven pillars - IndiaAI Compute, AIKosh, IndiaAI Foundation Models, IndiaAI FutureSkills, Startup Financing, Application Development and Safe & Trusted AI.

(f) and (g): FPI investment decisions are influenced by a wider set of factors and recent flows are part of portfolio  rebalancing  by  global  funds  across  emerging  markets.  Despite  FPI  outflows,  overall  investor sentiment remains intact, as evidenced by stock market benchmark indices holding close to their record highs.

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