India's stock indices drop 12% amid capital outflow risks, but economy remains resilient, says Finance Minister.
India's key stock indices have fallen nearly 12% since January due to excess liquidity and significant foreign capital outflows, which Finance Minister Nirmala Sitharaman identifies as a major risk for 2027. Despite this, India's economic fundamentals remain strong, supported by steady domestic investment and growth in frontier technologies like semiconductors. The country has not attracted much AI-related investment, which has flowed instead to markets like Taiwan and Korea, but Sitharaman believes India would not be severely impacted if the global AI bubble bursts. The government continues to focus on strengthening the economy amid global trade uncertainties and geopolitical challenges.
India's key stock indices have fallen nearly 12% since January due to excess liquidity and significant foreign capital outflows, which Finance Minister Nirmala Sitharaman identifies as a major risk for 2027. Despite this, India's economic fundamentals remain strong, supported by steady domestic investment and growth in frontier technologies like semiconductors. The country has not attracted much AI-related investment, which has flowed instead to markets like Taiwan and Korea, but Sitharaman believes India would not be severely impacted if the global AI bubble bursts. The government continues to focus on strengthening the economy amid global trade uncertainties and geopolitical challenges.
What's Your Reaction?
.jpg?width=960&format=webp#)
