FPI Outflows Reflect Global Shocks, Not India Weakness: World Bank Economist

Despite global headwinds, India’s growth outlook remains resilient, with the World Bank projecting 6.6% expansion in FY27. World Bank Economist Aurelien Kruse noted that net FPI outflows in FY26 are largely driven by external factors, as global investors recalibrate allocations across emerging markets, rather than any domestic weakness. India’s status as a net energy importer, especially amid oil shocks, has also contributed to rupee depreciation. However, the economy’s ability to navigate disruptions, supported by agile policymaking, underscores underlying strength. While FDI trends remain mixed, strong gross inflows indicate continued investor interest even as geopolitical uncertainties shape near-term prospects.