Countries In-Depth

Can India Withstand The Capital Strike?

02 Mar 2026

by Rajeeb Pramanik, India, ASEAN, and EMEA Strategist

India is seeing net capital outflows for the first time in a generation. The central bank is selling foreign reserves to defend the rupee, which is draining banking system liquidity. The latter risks derailing the nascent credit revival. Indian stock prices remain vulnerable.

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