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Net overseas nonstop concern remained antagonistic for the 4th consecutive period successful December 2025, coming successful astatine -$1.6 billion, owed to repatriation by overseas companies successful India and outward investments by Indian companies exceeding the magnitude of nonstop concern entering the country, an investigation of the latest information from the Reserve Bank of India (RBI) shows.
According to the RBI data, gross inflows of nonstop concern stood astatine a five-month precocious of $8.6 cardinal successful December 2025, which was besides 17.2% higher than successful December 2024.
“Gross inward FDI remained robust successful December, with Singapore, the Netherlands and Mauritius accounting for much than 80% of full inflows,” the RBI noted successful its monthly bulletin report. “The large recipient sectors were transport, manufacturing, machine services, and energy and different vigor generation, organisation and transmission.”
However, portion inflows witnessed comparatively robust growth, outflows exceeded them. Repatriation and disinvestments by overseas companies operating successful India accrued to astir $7.5 cardinal successful December 2025, the highest since astatine slightest January 2021, the earlier play for which information is readily available.
Outward investments by Indian companies accrued to $2.7 cardinal December, up 30.5% implicit December 2024 and 78% higher than successful November 2025.
“For outward FDI, cardinal destinations were Singapore, the U.S., the UAE, the UK and the Netherlands and the large sectors included financial, security and concern services, and wholesale/retail trade, restaurants, and hotels,” the study noted.
In earlier editions of the report, the RBI had said that uncertainty implicit the India-U.S. commercialized statement and the 50% tariffs had led to capitalist hesitation. The information for December 2025 comes earlier the announcement of the Interim Agreement with the U.S. and the Free Trade Agreement with the European Union, and truthful apt besides reflects this sentiment.
In this edition, the RBI noted that the announcement of some deals had led to portfolio investors returning to India.
“Foreign portfolio investments (FPIs) staged a comeback successful February with capitalist sentiments turning astir pursuing the India-EU escaped commercialized statement and the interim India-US commercialized deal,” the study said.
