Ireland, Canada, US lead rise in FPIs’ India assets in 2025 — despite heavy selling
Even though foreign portfolio investors (FPIs) sold over ₹1.66 lakh crore worth of Indian equities in 2025, their assets under custody (AUC) from some key countries still increased. This may sound contradictory, but there are solid reasons behind it.
📈 Countries where FPI India assets increased
- Ireland
- Canada
- United States
These countries emerged as the top contributors to higher FPI asset holdings in India during 2025.
📉 Countries that saw a decline
- Singapore
- United Kingdom
FPIs routed through these jurisdictions reduced their India exposure during the year.
Why assets rose despite net selling
1️⃣ Market valuation effect
Indian equity markets delivered strong gains in 2025, with:
- Sensex and Nifty hitting record highs
- BSE market capitalisation crossing historic levels
This mark-to-market appreciation offset part of the selling, pushing up the value of remaining holdings.
2️⃣ Shift in investment routes
- Many global funds are increasingly routing investments via Ireland and Canada due to:
- Tax efficiency
- Fund structuring advantages
- Presence of global ETF and passive fund hubs
- At the same time, Singapore and UK-based funds saw redemptions and reallocation.
3️⃣ Passive flows and ETFs
- While active FPIs sold, passive money (ETFs, index-linked funds) continued to flow in
- Most global India ETFs are domiciled in the US, Ireland, and Canada
4️⃣ Sectoral churn, not exit
FPIs were not exiting India entirely. Instead, they:
- Sold heavily in IT, FMCG, power
- Added exposure to telecom, oil & gas, services
This rotation kept overall asset values resilient.
What this means for Indian markets
🔹 No “FPI exodus”
Despite headline selling numbers, data shows FPIs:
- Still view India as a long-term structural growth market
- Are reallocating rather than withdrawing completely
🔹 Domestic investors filled the gap
- Mutual funds, insurance companies, and pension funds absorbed FPI selling
- Domestic institutional ownership reached record highs in 2025
🔹 India’s global weight remains strong
India’s rising weight in:
- MSCI indices
- Emerging market ETFs
continues to anchor long-term foreign capital.
Bottom line
📌 Selling pressure in 2025 was tactical, not structural
📌 Ireland, Canada, and the US gained prominence as FPI gateways to India
📌 India remains a core allocation for global investors, even amid volatility
If you want, I can also:
- Break this down with charts
- Explain tax-route advantages of Ireland vs Singapore
- Or link it to 2026 market outlook for FPIs
