Trump tariffs trigger massive ₹31,575 Crore pullout by foreign investors in India

Foreign investors have pulled out ₹31,575 crore from the country’s equity markets so far this month, in the wake of turbulence emanating from sweeping tariffs imposed by the US on most nations, including India.

This came following a net investment of ₹30,927 crore in the six trading sessions from March 21 to March 28. This infusion helped reduce the overall outflow for March to ₹3,973 crore, according to data from the depositories.

Total FPI outflow at ₹1.48 lakh crore

Compared to previous months, this marks a notable improvement. In February, foreign portfolio investors (FPIs) took out ₹34,574 crore, while in January, the outflow was even higher at ₹78,027 crore. This shift in investor sentiment highlighted the volatility and evolving dynamics in global financial markets.

According to the data, FPIs pulled out ₹31,575 crore from Indian equities between April 1 and April 11.

With this, the total outflow by FPIs has reached ₹1.48 lakh crore so far in 2025.

‘FPI likely to turn buyers in India’

“The turbulence in global stock markets following President Trump’s reciprocal tariffs has been impacting FPI investments in India too,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments, said.

He believes that a clear pattern in FPI strategy will emerge only after the ongoing chaos dies down.

“In the medium term FPIs are likely to turn buyers in India since both the US and China are heading for an inevitable slowdown as a result of the ongoing trade war. Even in an unfavourable global scenario India can grow by 6 per cent in FY26. This, along with better earnings growth expected in FY26, can attract FPI investments into India once the dust in the market settles down,” he added.

Vinit Bolinjkar, Head of Research, Ventura, said the ongoing sell-off in Indian equities is driven by macro and geopolitical risk led by tariffs slapped by the US government.

However, the country’s strong macro fundamentals remain intact. Robust domestic demand and ongoing trade realignment continue to position India favourably for the long term, he added.

Apart from equities, FPIs took out ₹4,077 crore from debt general limit and withdrew ₹6,633 crore from debt voluntary retention route.