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India Faces Capital Cold Snap in Largest Fund Retreat Since Jan

August 11, 2025

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Business Standard

EMs Synchronised in Capital Flight as Tariff Storm Clouds Darken

- SAMIE MODAK

India saw steep withdrawals from global funds last week, totaling $632 million—the largest since January 15. Nearly two-thirds of this, or $418 million, came from India-focused funds, marking the biggest outflows since February 19, according to Elara Capital.

This is the second straight week of heavy redemptions, interrupting a previous streak of steady inflows. Over the past five weeks, India-focused active funds have recorded cumulative withdrawals of $362 million.

Exchange-traded funds (ETFs) tracking Indian equities also faced outflows of $456 million over the past two weeks.

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