US and European FPIs increase India inflows in 2025, Singapore, Mauritius, UK lead sellers amid tariffs: Report
Mumbai, January 15
Foreign portfolio investors from the United States and several European countries have continued to raise their investments in Indian equities. In contrast, investors from Singapore, Mauritius, and the UK accounted for the largest outflows during CY25, according to a report by ICICI Securities.
The report noted that the share of US investors in overall FPI assets under management (AUM) in India has continued to rise structurally. FPI AUM of US investors expanded further to around 44 per cent of total FPI AUM in December 2025, indicating sustained long-term interest in Indian markets.
It stated, "US share of FPI AUM in India continues to rise structurally......On offsetting side, FPI AUM of US investors has continued to expand".
Among European regions, the report added that Ireland and Norway have also seen a continuous rise in their share of India equity AUM.
During CY25, Ireland-based FPIs increased their AUM exposure by 12 per cent, while Norway-based AUM rose by 7 per cent, indicating marginal selling pressure but largely stable positioning.
Canada-based FPIs also emerged as notable buyers, with their AUM expanding by 10 per cent during the year.
Other major FPI contributing geographies such as Luxembourg and Singapore largely maintained their share of FPI AUM over the years, with relatively smaller variations driven by fundamentals.
On the flip side, the report highlighted that the sharp FPI selling seen in CY25, amounting to Rs 1.66 trillion, was largely driven by investors from Singapore, Mauritius and the UK.
Despite a nearly 9 per cent rise in the NSE 100 index during the year, FPI AUM from Singapore contracted by 10 per cent, Mauritius by 5 per cent and the UK by 4 per cent, making these geographies the biggest contributors to outflows amid geopolitical tensions and tariff-related concerns.
The report "CY25 tariff related sell-off driven by Singapore, Mauritius and UK"
Sector-wise, FPIs were net sellers in IT and hardware, discretionary consumption, FMCG, power and healthcare during CY25, while telecom, energy, chemicals and metals and mining witnessed net buying.
— ANI
Reader Comments
Interesting to see the sector-wise breakdown. FPIs selling in IT and FMCG but buying in energy and metals. Maybe they are betting on the infrastructure and manufacturing push? Hope this inflow stability continues despite global headwinds.
The report is good, but I have a respectful criticism. It focuses heavily on the "who" but not enough on the "why" for the common investor. Why are US funds so bullish structurally? Is it just macros, or specific policy stability? A little more depth would help.
As someone tracking markets, the shift is clear. The old routes (Mauritius) are seeing churn, but direct investment from major economies is rising. This is positive for transparency and long-term health of our markets. The tariff concerns are a short-term blip.
Bhai, 1.66 lakh crore selling is no joke! Even if the index went up, this massive outflow from some geographies is a worry. Hope the government is engaging with these investors to address their tariff and geopolitical concerns. We need all kinds of money.
Good to see Canada and Norway increasing their share. Diversification of FPI sources is key. Less reliance on any single geography makes our markets more resilient. The headline numbers are strong, but this underlying shift is the real story.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.