New Delhi, Sept. 24 -- As the first half of FY27 (April-September) draws to a close, India finds itself in a precarious position. The domestic economy grew 7.8% in the June quarter, up from 6.9% a year earlier, but the external environment has turned markedly more hostile. Worryingly, the shock could last longer than market experts had initially anticipated.

The West Asia war, now in its seventh month, has shaped domestic markets from April to September (H1) this fiscal year. At the same time, the lack of artificial intelligence-led investment opportunities diverted foreign capital towards East Asian emerging markets such as South Korea and Taiwan.

As a result, foreign portfolio investor (FPI) outflows nearly doubled to Rs.60,847 crore ...