India is stepping up its global investment pitch as foreign investors reduce exposure to the country’s markets, with Finance Minister Nirmala Sitharaman travelling to Canada and the US to promote trade, investment and economic cooperation.

Commerce and Industry Minister Piyush Goyal is also in Japan, making the case for India as a trusted destination for global capital.

The overseas outreach comes at a time when India’s strong economic growth has not translated into equally strong foreign investment flows. India is expected to report GDP growth of close to 8% for the latest quarter, after growing 7.7% in FY26.

Despite this strong backdrop, foreign investors have remained cautious about Indian equities, partly because of relatively high valuations and the growing appeal of other Asian markets.

Sitharaman has highlighted India’s large market, sustained economic growth, young population, rising consumption and expanding capital markets as key reasons for international investors to remain interested in the country.

She has also argued that India’s growth is structural rather than dependent only on the current economic cycle, pointing to urbanisation, a growing middle class and expanding digital infrastructure.

The government’s pitch comes after a difficult period for foreign portfolio investors. Foreign investors have pulled around $25.1 billion from Indian investments this year, while Indian equities have declined more than 7%.

Overall, India’s global investment campaign reflects a clear message: strong economic growth alone is not enough to attract global capital. India is now competing aggressively with other emerging and developed markets for investment.

The country’s large domestic market, infrastructure push and strong growth prospects remain major advantages, but maintaining investor confidence will depend on valuations, policy execution and the ability to convert economic growth into broader employment and productivity gains.

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