Foreign Investor Interest in India Declines, Says Zerodha CEO Nithin Kamath
'Interest Has Died Out': Nithin Kamath Explains Why FPIs Are Deserting India
Ndtv
Image: Ndtv
Nithin Kamath, founder and CEO of Zerodha, has highlighted a significant decline in foreign portfolio investor (FPI) interest in India, attributing it to geopolitical risks, high valuations, and domestic policy issues. FPIs have sold Indian equities worth ₹1.77 lakh crore (approximately $21.3 billion USD) in 2026, with a notable sell-off in March.
- 01Foreign Portfolio Investors (FPIs) have sold equities worth ₹1.77 lakh crore (approximately $21.3 billion USD) in 2026.
- 02Nithin Kamath cites geopolitical risks, particularly related to oil, as a major concern for investors.
- 03High valuations and a weak rupee are contributing to the decline in foreign investment.
- 04Changes in capital gains tax have made India less attractive for foreign investors.
- 05Kamath suggests addressing these issues as essential for attracting FPIs back to the market.
Advertisement
In-Article Ad
Nithin Kamath (founder and CEO of Zerodha) has expressed concerns over the declining interest of Foreign Portfolio Investors (FPIs) in India, stating that it has 'pretty much died out.' In a LinkedIn post, he noted that FPIs have sold Indian equities worth ₹1.77 lakh crore (approximately $21.3 billion USD) in 2026, with a significant sell-off of nearly ₹1.2 lakh crore in March alone. Kamath attributes this trend to a combination of geopolitical risks, particularly India's vulnerability to oil shocks, expensive market valuations, and a weak Indian rupee. He also pointed out that the capital gains tax structure has deterred foreign investments, as Finance Minister Nirmala Sitharaman increased the long-term capital gains tax from 10% to 12.5% in the 2024 Union Budget. Kamath believes that addressing these issues is crucial for revitalizing foreign interest in the Indian market and considers them low-hanging fruit for policymakers.
Advertisement
In-Article Ad
The decline in foreign investment could lead to reduced liquidity in Indian markets and may affect stock prices, impacting both investors and the broader economy.
Advertisement
In-Article Ad
Reader Poll
What do you think is the main reason for the decline in foreign investments in India?
Connecting to poll...
Read the original article
Visit the source for the complete story.