Foreign Investors On India: Caution, Confidence And The Road Ahead | WGS 2026

As India re-engages with the global economy through a series of trade deals, the mood among foreign investors is evolving. While global mutual funds remain cautious amid concerns over market valuations, currency depreciation and risk-return dynamics, recent trade agreements have helped restore confidence in India’s macro story. The response of the rupee and renewed optimism among global funds signal that India is back in focus. Strategic priorities-especially government-led investments in AI, R&D and semiconductors - are being closely watched. At the same time, investors flag lingering concerns around taxation clarity and capital exit frameworks. The consensus: India’s long-term opportunity remains compelling, but sustained foreign capital will depend on stable policies, predictable taxation and an open, globally competitive investment ecosystem.