7 months ago
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Net Foreign Direct Investment (FDI) into India fell 159% successful August 2025, with much wealth leaving the state than entering it that month, according to authoritative data. This is the 2nd clip this fiscal twelvemonth that outflows person exceeded inflows.
However, the representation is reversed erstwhile looked astatine implicit a longer clip period, with nett FDI successful April-August 2025 much than 121% higher than successful the aforesaid five-month play of the erstwhile year.
An investigation by The Hindu of information released by the Reserve Bank of India shows that the repatriation and disinvestment by overseas companies operating successful India and the investments done overseas by Indian companies — which taken unneurotic is the full wealth leaving the state — was higher than the gross magnitude that was invested into India successful August 2025.
Investment breakup
Gross investments into India stood astatine $6,049 cardinal successful August 2025, 30.6% little than their level successful August past twelvemonth and 45.5% little than successful July this year. This was the lowest level of gross inflows successful this fiscal twelvemonth truthful far.
The magnitude repatriated and disinvested by overseas companies operating successful India stood astatine $4,928 cardinal successful August 2025, down 5.4% implicit the magnitude successful August 2024 but astir 30% higher than the magnitude successful July 2025.
Foreign investments by Indian companies contracted 29.7% successful August 2025 to $1,736 million, the lowest successful this fiscal year.
Taken together, this meant that nett FDI into India — the quality betwixt the gross magnitude coming successful and the full magnitude going retired — stood astatine -$616 cardinal successful August 2025, 159% little than successful August past year. That is, much wealth near the state successful August 2025 than entering it that month.
This had happened successful May 2025 arsenic well, albeit astatine a smaller scale, arsenic nett FDI had stood astatine -$5 cardinal during that month.
Rosier semipermanent
However, the FDI representation looks amended erstwhile looked astatine implicit a longer timeframe.
Net FDI successful the April-August 2025 play was $10,128 million, much than 121% higher than successful the aforesaid play of past year. This was driven by a 18.2% summation successful gross inflows ($43,760 million) entering the state and a 6.1% contraction successful repatriation and disinvestment ($21,205 million) leaving India during this period.
Foreign concern by Indian companies stood astatine $12,427 cardinal successful the April-August 2025 period, up astir 26% implicit the aforesaid play of the erstwhile year.
