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India Intensifies Financial Sector Reforms After $17 Billion Foreign Outflow
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India launched sweeping sector reforms to counter $17 billion in capital outflows, targeting regulatory simplification and stronger investor confidence for FY26 recovery.
Facing persistent capital flight, India has accelerated a new wave of banking, insurance, and capital-market reforms after $17 billion in net foreign outflows this year. The finance ministry plans to ease listing rules for insurers, streamline tax compliance, and expand the unified payments interface abroad. Economists said the measures aim to strengthen investor confidence and rebuild buffers amid global risk aversion. Officials added that deeper structural reforms, not just liquidity measures, will determine whether India restores steady portfolio inflows before FY26.