Foreign investors withdrew Rs 31,000 crore from the market in April amid tariff war
Tariffs: Experts believe that the US and China are heading towards recession due to tariff war. In such a situation, foreign investors can turn to India in the medium term. FPI investment in India may increase with better income growth in the financial year 2026.

There is an instability period for markets across all parts of the world with US imposing tariffs on several nations and tariff war between US and China being a likely prospect. Foreign investors, at the same time, have pulled out Rs 31,575 crore out of Indian markets during the month of April. While, concurrently, an investment of around Rs 30,927 crore flowed into six sessions between 21st and 28th of March. As per depository data, overall withdrawal for this investment during March reduced to Rs 3,973 crore.
Foreign portfolio investors withdrew Rs 34,574 crore in February. In January, foreign investors withdrew Rs 78,027 crore. All this indicates changes in investor sentiment which show how volatile and dynamic financial markets worldwide have been. According to the data, between April 1 and April 11, foreign investors withdrew Rs 31,575 crore from Indian equities. With this, foreign investors have withdrawn a total of Rs 1.48 lakh crore from the Indian market in the year 2025.
VK Vijaykumar, Chief Investment Strategist, Geojit Investment, said, "The turmoil in global stock markets after President Trump's reciprocal tariffs is also affecting FPI investment in India." He believes that a clear pattern of foreign investors' strategy will emerge only after the current period of chaos calms down. He believes that the US and China are heading towards recession due to the tariff war. In such a situation, foreign investors may turn to India in the medium term. FPI investment in India may increase with better income growth in the financial year 2026. Vinit Bolinjkar, Head of Research at Ventura, said that the ongoing sell-off in Indian equities is driven by geopolitical risks due to tariffs imposed by the US government. However, the country's strong macro fundamentals remain intact. Due to which strong domestic demand and trade restructuring talks will benefit India in the long term.