4 months ago
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India’s nett overseas nonstop investments (FDI) remained antagonistic for the 4th consecutive period successful November 2025, with outflows exceeding inflows by $446 cardinal that month, an investigation of latest information from the Reserve Bank of India (RBI) shows.
The data, released arsenic portion of the RBI’s monthly bulletin, shows that the main crushed nonstop concern outflows exceeded inflows successful November was due to the fact that of comparatively precocious repatriations and disinvestments by overseas companies operating successful India.
Direct investments are typically made successful assets and are viewed arsenic growth-generating, arsenic opposed to portfolio investments, which are mostly done successful equity and indebtedness for expected returns.
The RBI noted that nett overseas portfolio investments (FPI) person besides been antagonistic truthful acold successful the fiscal twelvemonth 2025-26, with uncertainty implicit the India-U.S. commercialized woody and the weakening rupee affecting capitalist confidence.
Steady gross inflows
Gross nonstop inflows, which is the full magnitude of nonstop concern coming into the country, stood astatine $6.4 cardinal successful November 2025, 22.5% higher than the magnitude received successful November past year. It was, however, marginally little than the $6.5 cardinal received successful October and the $7 cardinal successful September.
“Gross inward FDI remained dependable successful November with Japan, Singapore, and the U.S. accounting for much than 75% of full FDI inflows,” the RBI said successful its report. “The highest recipients (around 75%) of FDI inflows were the fiscal services sector, followed by manufacturing, and retail and wholesale trade.”
Higher repatriations
Net FDI, however, which is the equilibrium betwixt outflows and inflows stood astatine -$446 million, meaning full outflows exceeded full inflows by that amount. Within this, repatriation and disinvestment stood astatine a five-month precocious of $5.3 cardinal successful November 2025, albeit 1.2% little than it was successful November 2024.
Outward FDI, which is the investments made by Indian companies abroad, stood astatine $1.5 cardinal successful November 2025, little than fractional the $3.2 cardinal successful October.
“Outward FDI moderated successful November, with Singapore, Mauritius, the U.S. and the UK accounting for much than fractional of full outward FDI,” the RBI noted. “Sector-specific breakdown suggests that much than 70% of outward FDI was successful manufacturing, financial, insurance, and concern services.”
Portfolio investments proceed exit
The RBI study said that nett overseas portfolio investments were antagonistic for the 2025-26 fiscal twelvemonth up to January 16, 2026.
“The uncertainty surrounding the India-US commercialized woody and the weakening of the rupee person kept nett FPI flows to India muted successful caller months,” the RBI said. “After a little signifier of nett inflows successful October and November, FPIs registered nett outflows of $4.2 cardinal successful December. Debt flows besides turned antagonistic successful December aft a five-month period.”
