Then there is India’s account deficit problem. Indians’ voracious appetite for gold forced the government to increase import tariffs on the yellow metal. That move may be too little too late as low gold prices sparked imports of 162 million tons last month, which could prompted a record account deficit of $20 billion, according to Nomura

With these types of concerns, it probably is not surprising that EPI and the PowerShares India Portfolio (NYSEArca: PIN) have seen combined year-to-date outflows of over $303 million, according to Index Universe data.

Outflows from India ETFs belie inflows to the local market. Foreigners have invested $15.2 billion into Indian stocks this year through June 11, second only to Japan among Asian markets, reports Rajhkumar Shaaw for Bloomberg

Inflows to local Indian stocks serve as one more reminder regarding the near-term enigma of Indian stocks. Adventurous investors may be left hoping that India ETFs offer a sequel to their 2012 performance where the funds slumped for much of the second and third quarters before rallying late in the year.

PowerShares India Portfolio

ETF Trends editorial team contributed to this article.