India turns to patient capital as FII flight tightens balance of payments pressure

Policy makers are prioritising long-term inflows over hot money

Facing FII outflows and fresh balance of payments strain, India’s finance ministry is coordinating with the RBI to roll out measures aimed at attracting “patient capital.” The focus is to bring in longer-duration funds that can better absorb market shocks, stabilise external accounts, and reduce reliance on shorter-term, more volatile flows.