Net FDI negative for fifth straight month in January 2026 as outflows exceed inflows by $1.4 billion

Net overseas nonstop concern (FDI) into India contracted for the 5th consecutive month successful January 2026, with outflows exceeding inflows by astir $1.4 billion, a three-month high. The information shows this was due to the fact that inflows into India fell astir 7% portion the magnitude repatriated retired of the state astir doubled.

According to information released by the Reserve Bank of India connected Monday arsenic portion of its monthly bulletin, the full magnitude of wealth entering India arsenic nonstop investment, oregon gross FDI, stood astatine astir $5.7 cardinal successful January 2026. 

This was 7% little than successful January past year, and lone two-thirds of the magnitude that came successful December 2025. The RBI, however, looked astatine a longer clip play to gully immoderate affirmative conclusions. 

“During April 2025 - January 2026, gross FDI inflows remained strong, higher than the corresponding play a twelvemonth ago,” the cardinal slope noted successful its report. “Sector-wise, manufacturing received the highest stock of equity inflows, followed by machine services, energy and different energy, and fiscal services — these sectors unneurotic accounted for implicit 60% of full inflows.”

With respect to outflows, the outward FDI by Indian companies accrued by 5.4% successful January 2026 to $2.1 billion. This was, however, astir 30% little than the outward FDI successful December 2025. 

“Around 75% of the outward FDI flows were directed to the U.S., Singapore, the UK, and the UAE during the [April 2025 - January 2026] period,” the RBI said.

Repatriation and disinvestment by overseas companies doing concern successful India, connected the different hand, accrued by 97.3% to $4.9 cardinal successful January 2026. But this was astir 18% little than the magnitude successful December 2025. 

As a result, nett FDI stood astatine astir -$1.4 billion, the lowest since October 2025. 

The cardinal slope noted that portfolio investments again flowed retired much than they flowed successful in March this year. 

“After staging a comeback successful February 2026, overseas portfolio investments (FPIs) turned nett sellers again successful March 2026, driven by deteriorating planetary capitalist sentiment pursuing the struggle successful the Middle East,” the study said.