From the Opinions Editor: Foreign capital flows trickle back in, but fresh headwinds are buffeting the economy

The US dollar index — which measures the strength of the greenback against a basket of six currencies — is strengthening. (File image) 5 min readNew DelhiJul 26, 2026 05:47 PM IST First published on: Jul 26, 2026 at 05:40 PM IST Dear Express reader, Over the last few weeks, there have been some signs of foreign capital flows trickling back in. In July, foreign portfolio investors have so far poured in $1.5 billion in the equity markets, reversing the trend of massive capital outflows witnessed in the months before. Last week, the RBI also disclosed that after the measures it had announced to boost capital flows, so far, $17.4 billion had been mopped up through the FCNR(B) route, and another $3.3 through other channels. In April and May, net FDI stood at $6.5 billion, as compared to $2.4 bi