India is stepping up reforms in the financial sector, triggered by nearly $17 billion of foreign outflows this year. Key moves include easing entry for foreign funds, simplifying borrowing norms for corporates and banks, and raising capital-buffer requirements. The strategy reflects concern over external-fund-flow volatility and weakening investor confidence amid U.S. tariff pressures. Domestic banks and non-bank lenders are further encouraged to adopt internal stress-testing standards aligned with global practices. Analysts suggest that while reforms are welcome, impact will depend on execution pace and regulatory follow-through.