The ongoing conflict in the Middle East, particularly the war involving the U.S., Israel, and Iran, has caused significant foreign investor withdrawal from Indian markets, totaling over ₹52,000 crore in March alone.
The conflict in the Middle East, particularly the war unfolding between the U.S., Israel, and Iran, has created turmoil in global markets, leading to an alarming withdrawal of foreign investments from India. Since the commencement of hostilities on February 28, 2023, foreign institutional investors (FPIs) have divested more than ₹52,000 crore (around $5.73 billion) from the Indian market in March, demonstrating a marked loss of confidence amid rising tensions. The connected issues such as the depreciation of the Indian rupee and increasing crude oil prices have further exacerbated the sentiment of foreign investors, resulting in significant sell-offs.
