Indian Finance Minister Nirmala Sitharaman stated that excess liquidity and easy exits have contributed to the equity market's underperformance, with key benchmark indexes slipping nearly 12% since January. Speaking on Friday at the IMF-World Bank meetings in Bangkok, Sitharaman highlighted continued capital outflows as one of the biggest risks for the country in 2027. Foreign portfolio investors have sold over $33 billion in Indian equities this year, as capital shifts towards AI-focused markets like Taiwan and Korea. Despite this, domestic capital inflows remain strong, and Sitharaman believes India will not be significantly impacted if the global AI rally falters, as the country has not received substantial AI-related investments.