India’s financial markets continue to attract substantial foreign capital, as evidenced by FII inflows of ₹23,778 crore in May.This signals confidence in india’s economic stability and growth potential amidst global uncertainties. However, reliance on external investments poses a risk should global liquidity conditions tighten or geopolitical events cause sudden outflows. India’s ability to maintain robust domestic demand and consistent policy frameworks will be crucial in sustaining this momentum while managing vulnerabilities tied to foreign capital dependence.