FPIs Outflow Continues: Pulls Out ₹30,000 Crore from Indian Equities Till March 13, 2025

Foreign investors are continuing to withdraw funds from the Indian equity market, with outflows exceeding ₹30,000 crore in the first fortnight of March. This comes amid rising global trade tensions, which have led to a cautious approach from Foreign Portfolio Investors (FPIs).

According to depository data, FPIs offloaded shares worth ₹30,015 crore from Indian equities between March 1 and March 13. This marks the 14th consecutive week of net outflows from the Indian equity market.

FIIs Outflow Continuous in March 2025

The persistent pullback by FPIs follows a withdrawal of ₹34,574 crore in February and a massive ₹78,027 crore in January. With these figures, the total equity outflow by foreign investors has reached ₹1.42 lakh crore (approximately USD 16.5 billion) in 2025 so far.

This substantial outflow reflects a cautious investment stance by FPIs, who significantly scaled back their equity investments in India during 2024. The net inflow from FPIs in 2024 was a mere ₹427 crore, a stark contrast to the massive ₹1.71 lakh crore net inflows recorded in 2023.

Debt Market Investment Remains Steady

While withdrawing from equities, FPIs have continued to show interest in India’s debt market.

They invested ₹7,355 crore in the debt general limit in March, while withdrawing ₹325 crore from the debt voluntary retention route.

Comparing Past Trends

The current trend sharply contrasts with 2023, when FPIs invested heavily in Indian equities, driven by optimism surrounding the country’s strong economic fundamentals. However, the ongoing global trade tensions and economic uncertainties have resulted in a reversal of sentiment in 2025.

In comparison, 2022 also witnessed heavy foreign outflows, with FPIs pulling out ₹1.21 lakh crore amid aggressive rate hikes by global central banks. The pattern of outflows seen in 2025 suggests sustained caution among foreign investors, influenced by global economic conditions and monetary policy decisions by major central banks worldwide.

Conclusion 

The sustained outflows from Indian equities highlight growing investor caution amid global trade tensions and economic uncertainties. While FPIs continue to exit equities, their interest in the debt market remains steady.

The sharp contrast with previous years signals shifting investor sentiment, with global monetary policies and economic conditions likely to influence future foreign investments in India.

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