India finance minister blames outflows, liquidity for market slump

· Economy · India

India's finance minister blamed easy exits and excess liquidity for the equity market's underperformance, saying that continued capital outflows are one of the biggest risks for the country in 2027. The comments come as Indian stocks lag and investors weigh how global monetary conditions and the AI-led selloff affect emerging markets. New Delhi has been trying to reassure foreign investors as capital moves elsewhere.

Why it matters：Capital flight from major emerging markets tests their policy buffers and can ripple through global asset allocation.

Key points

  • The minister cited easy exits and excess liquidity.
  • Continued capital outflows are seen as a top 2027 risk.
  • Indian equities have underperformed recently.

Sources (original reporting)

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