Why are FPIs selling?

We need to see a concerted attempt to make India an easier place to do business

We have recently seen significant selling of Indian equities by foreign portfolio investors. In July, the selling has touched almost $2.5 billion, and is now seems to be accelerating. Consequently, India has had a very tough year on a relative basis. While the markets globally are hitting new highs, we are struggling to stay in positive territory. Indian mid-caps and small-caps continue to get decimated — downdouble digits for the year. In a ranking of the top 50 equity markets, in terms of performance year-to-date, we are ranked 43rd. What is surprising is that we are doing poorly despite what