Finance Minister Nirmala Sitharaman addressed concerns today regarding the recent selling of Indian equities by foreign institutional investors (FII), stating that the action is due to profit booking.

Speaking to reporters in the financial capital, Sitharaman said “FIIs also go out when they are able to or in a position to book profits. Indian market today, Indian economy today, has an environment in which investments are also yielding good returns and profit booking is also happening. The Indian economy is one where the investors are bagging better returns which leads to profit booking."

Since October of last year, foreign institutional investors (FIIs) have sold more than Rs 1.56 lakh crore worth of stocks, including nearly Rs 1 lakh crore in 2025 alone. This has resulted in a significant correction in the indices and a reduction in investor wealth.

Finance Secretary Tuhin Kanta Pandey stated, "FIIs are not moving from one emerging market to another. During times of global uncertainties, like the one we are witnessing now, they tend to return to their home country, mostly the US. However, these shifts may be temporary. Indian markets are resilient. We have faced global headwinds in the past and will continue to face them. But I believe India is in a strong position to handle it. India remains the fastest-growing large economy, and the recently announced Budget includes several growth-oriented measures."

The Secretary of the Department of Economic Affairs, Ajay Seth, rejected the idea that the government should intervene in the market due to heavy selling. In his view, such intervention would only be warranted in the circumstance of observable market failure, which, according to him, is currently not the case. Furthermore, he clarified that equities are not all that policy-driven by the government, with overseas investors preferring to move to developed or larger markets during times of uncertainty.

Ajay Seth also mentioned that  while India has shown resilience when it comes to world events in parts, it is not fully de-coupled either.
When asked about the US posturing on tariffs, Sitharaman responded that India is making an effort to become more investor friendly. She also mentioned the recent budget announcements on reforms in customs duties as evidence of this effort.

Sitharaman stated that for the past two years, India has taken numerous steps regarding duties in the interest of protecting local industries and jobs. She also highlighted that safeguard and anti-dumping duties are subject to periodic reviews.