Foreign Investors Pull Out ₹31,575 Crore from Indian Equities in April Amid Global Tariff Turmoil

Foreign portfolio investors (FPIs) have withdrawn ₹31,575 crore from Indian equity markets in the first eleven days of April 2025, as heightened global trade tensions triggered by sweeping US tariffs led to turbulence across global financial markets.

This outflow follows a relatively positive trend observed toward the end of March when FPIs had infused ₹30,927 crore in the six trading sessions between March 21 and March 28. That infusion had helped limit March’s overall net outflow to ₹3,973 crore, according to data from depositories.

Sharp Turnaround After March Respite

Compared to earlier months, the April outflows mark a sharp turnaround, though the trend reflects an overall improvement in FPI activity since the start of the year. In February, FPIs had withdrawn ₹34,574 crore, while January saw a massive outflow of ₹78,027 crore.

Despite the recent inflows in late March, the return of risk aversion in April underscores the volatility and evolving investor sentiment amid ongoing global uncertainties.

Total FPI Outflow Reaches ₹1.48 Lakh Crore in 2025

With the latest data, total FPI outflows from Indian equities so far in 2025 have surged to ₹1.48 lakh crore, reflecting the cautious stance foreign investors have adopted in light of shifting global trade policies and monetary dynamics.

Debt Segment Also Sees Withdrawals

The impact of FPI pullback was not limited to equities. In the debt markets, foreign investors also withdrew ₹4,077 crore under the general limit and ₹6,633 crore from the voluntary retention route (VRR), adding further strain on capital flows.

As global markets continue to adjust to the new trade realities and central bank policies, analysts expect FPI flows to remain sensitive to international developments in the weeks ahead.

Conclusion 

The significant FPI outflows in early April highlight growing investor caution amid escalating global trade tensions.

While late March offered a brief respite, ongoing uncertainty around US tariffs and global market volatility continues to drive capital flight. Sustained inflows may depend on policy clarity and improved global economic sentiment in the coming months.

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