New Delhi, Nov. 19 -- After almost a year of capital outflows from foreign portfolio investors (FPI), India seems poised for a notable recovery. A recent report from Elara Capital, which has tracked FPI trends for the last 15 years, shows that foreign investments largely depend on one crucial factor, which is nominal GDP growth. Experts believe that this growth is expected to pick up speed by FY27-28, potentially triggering a revival in FPI inflows as early as the first quarter of 2026.

"The key factor influencing FPI appetite for Indian equities is nominal GDP growth, which has historically shown a strong correlation with FPI inflow cycles. Five peak-to-trough FPI cycles since 2010 align closely with India's nominal GDP cycles," said El...