Foreign capital is slipping away. Can India lure investors back?

Synopsis India faces a tougher battle for foreign capital as FPI outflows rise and global investors shift money towards AI, semiconductors and manufacturing hubs in Taiwan and South Korea. India’s FDI prospects remain resilient, but policy uncertainty, tariffs, regulation and weak manufacturing competitiveness could determine whether it can attract long-term global investment. Contrary to what many may be thinking, India is not facing a wholesale flight of foreign capital. Its foreign direct investment prospects remain relatively firm, while a series of temporary measures have brought large foreign-currency inflows into the country. But portfolio investors have been much less convinced. The…