In 2025, India experienced a significant outflow of Foreign Institutional Investment (FII), totaling 1.6 lakh crore, which coincided with the rupee reaching record low levels. Despite this capital flight and global fund caution, domestic Systematic Investment Plan (SIP) flows demonstrated resilience, helping to keep the stock market stable. This pattern highlights the volatile nature of FII investments seeking short-term returns, though India remains an attractive destination for global businesses and investors.