Foreign outflows spur financial reforms push

RATTLED BY NEARLY $17 billion in foreign outflows this year, India is doubling down on financial sector reforms in a push to beef up capital buffers and lift investment in the country amid wider worries about the economic hit from US tariffs.

- REUTERS

Several measures to anchor foreign participation and boost credit have already been announced by the central bank and market regulator in recent months. These include quicker pathways for companies to list and foreign funds and overseas lenders to enter and rules that allow corporates to borrow more easily and banks to finance mergers.

Other areas of regulatory easing in India’s $260 billion financial sector are under discussion to be rolled out over the next six-to-12 months, said six regulatory and market sources with knowledge of the matter.