New Delhi, April 4 -- The global investment landscape is bracing for disruption as the Trump administration rolls out sweeping reciprocal tariffs on nearly all countries. The baseline 10% tariff rate against all countries will go into effect on 5 April. India faces a 27% tariff (effective 9 April) lower than many Asian peers but higher than Brazil (10%) and the Philippines (17%). Will foreign portfolio investors (FPIs) weigh tariff differentials against long-term growth prospects and reassess their allocations, and will these lower tariffs alone be enough to lure back foreign capital?

After a brutal 15-week sell-off-the longest streak of foreign outflows, Indian capital markets saw a glimmer of hope in late March as these overseas invest...