Foreign money is leaving India for the AI trade it can't buy at home — ~$58bn out since 2024, while Taiwan and Korea swell.
~$58.44bn
net foreign equity outflow from India since the Sept-2024 peak (~₹5.27 lakh cr), as-of 30-Sep-2026, computed from NSDL
| MSCI EM weight | Sept-2024 | Sep-30-2026 |
|---|---|---|
| Taiwan | 18.77% | 28.94% |
| South Korea | 11.67% | 21.4% |
| India | 19.9% | 10.65% |
| China | 24.42% | 19.8% |
0 Indian companies in the MSCI EM top 10 — first time in 26 years (3 at the Sept-2024 peak: Reliance, Infosys, ICICI). TSMC alone (15.63%) is now more than all of India.
The reading — and its limits
India's weight roughly halved while Taiwan and Korea — the AI-hardware markets — swelled, because index weight follows market value and ~$750bn of passive money mechanically follows the index. India isn't in the AI-hardware trade (its largest names are banks, energy, consumer), so as the world rotated to AI there was nothing in the Indian index for that money to land on. The $58.44bn (as-of 30-Sep-2026) is the cumulative outflow since the peak; the calendar-year figures (2025 ≈ −$19bn, 2026 Jan–Sep ≈ −$28bn) measure a different window and are not additive with it. The summer's brief run of inflows reversed in September — both September fortnights were net outflows — and India's weight fell to a new low on the series.
Method Outflow computed by us from NSDL depository data (net FPI equity flows, cumulative since the Sept-2024 peak). Index weights from MSCI Emerging Markets Index factsheets read directly — Gold where a factsheet (including archive-recovered), Silver where computed from the iShares EEM fund proxy (3 gap-month fills, 5 overlap checks), tier marked per row.
Computed 30 September 2026