India’s Sitharaman: Market Liquidity Makes Exits Easier for Foreign Investors

Sitharaman's pitch reframes liquidity as an investor-protection feature, not just a market characteristic — a direct answer to the exit-risk concern that has weighed on foreign portfolio flows into emerging markets. The comments, made at the IMF-World Bank meetings, are aimed squarely at allocators weighing India against other emerging destinations. The open question is whether the liquidity argument holds under stress: ample depth in normal conditions and easy exits during a sharp selloff are different claims, and foreign flows will be the test of whether the pitch lands.