Strategies to Revive Foreign Investment in India Amid AI Market Trends
'If AI Trade Cools Down...': Market Expert On Bringing Back Foreign Investors to India
Image: Times Now News
Foreign investments in India have dropped to a decade low, with foreign portfolio investors selling ₹283,662 crores in 2026. Experts suggest that a cooling AI market could reverse this trend, supported by government measures to attract foreign investments and stabilize the rupee.
- 01Foreign portfolio investments in Indian markets reached ₹7.3 trillion as of June 1, the lowest since 2016.
- 02In May, FPIs sold a net equity worth ₹32,963 crores, continuing into June with total sales of ₹42,926 crores by June 6.
- 03Dr. V K Vijayakumar from Geojit Investments noted that a cooling AI market could reverse FPI outflows.
- 04The Indian government has introduced tax exemptions and reforms to attract foreign investments in government securities.
- 05Recent measures have contributed to the rupee's appreciation from a low of 96.96 to 94.94.
Advertisement
In-Article Ad
Foreign investments in Indian markets have plummeted to a 10-year low, with foreign portfolio investors (FPIs) selling ₹283,662 crores in 2026 alone. As of June 1, net investments by FPIs stood at ₹7.3 trillion, the lowest since 2016. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, indicated that a reversal in the AI market, which has driven FPI outflows, could help bring back foreign investors. Recent government initiatives, including tax exemptions on interest and capital gains from FPI investments in government securities, aim to attract foreign capital. These measures, along with increased access to government bonds and support for NRIs and OCIs, are expected to enhance forex inflows and stabilize the rupee, which has appreciated from a low of 96.96 to 94.94. Additionally, the rise of stock markets in Taiwan and South Korea, driven by AI investments, highlights the competitive landscape for attracting foreign capital.
Advertisement
In-Article Ad
The measures taken by the government to attract foreign investments are expected to stabilize the rupee and finance the current account deficit.
Advertisement
In-Article Ad
Reader Poll
What do you think will be the impact of AI market trends on foreign investments in India?
Connecting to poll...
Read the original article
Visit the source for the complete story.