In April, Foreign Portfolio Investors (FPIs) cautiously invested ₹1,976 crore (approximately $240 million USD) in Indian debt, a stark contrast to the ₹17,688 crore (about $2.1 billion USD) in net sales recorded in March. This cautious approach stems from a combination of global and domestic challenges, including elevated real interest rates in developed economies like the United States and Japan, a depreciating rupee, and rising concerns over India's fiscal health. The Indian rupee recently fell to a record low of 95.33 against the dollar, exacerbated by increasing crude oil prices, which have raised worries about the country's fiscal position due to its heavy reliance on energy imports. Economists suggest that FPIs may continue to face challenges in the near term, with inflows likely remaining sporadic amid fears of higher domestic interest rates and fiscal deficits. For substantial long-term inflows, a significant catalyst, such as India's inclusion in a major global bond index like the Bloomberg Aggregate Bond Index, would be necessary.