
Financing India’s External Balance – An Assessment of RBI’s 2026 Measures to Attract Foreign Capital
History doesn't repeat itself, but it often rhymes. When the war in West Asia intensified in February 2026, the rhyme was not hard to find. Rising crude oil prices expanded India's trade deficits. Foreign portfolio investors were leaving the market. And the rupee had dropped approximately 3.9 percent against the U.S. Dollar between February 27th and June 22nd 2026.






