Mumbai, May 28 -- The economic fallout from the West Asia conflict has also triggered severe foreign portfolio capital flight, with Foreign Institutional Investors (FIIs) pulling out a record Rs 2.2 lakh crore from Indian equities in 2026.

Speaking in an exclusive interview with ANI, Debopam Chaudhuri, Chief Economist at the Piramal Group described this as a temporary "fear psychosis" common to emerging markets during global crises, rather than a structural exit from Indian valuations.

Pointing to a slowing Chinese economy, he expressed strong long-term optimism for India.

"I am pretty hopeful that once the crisis resolves...there will be an inflow reversal of FII investments into the country given India's inherent strengths in the for...