Overview

• Net Foreign Direct Investment (FDI) in India fell sharply to $0.4 billion in FY2024-2025, a 96.5% decrease from the previous year's $10.1 billion.
• Gross FDI inflows, however, rose by 13.6% to a record $81 billion, reflecting sustained foreign investor confidence in India's economy.
• The Reserve Bank of India views the decline in net FDI as a sign of a mature economy, citing smoother entry and exit for foreign investors.
• Outward FDI by Indian companies surged by 74.8% to $29.2 billion, with major investments directed toward markets like Singapore, the US, and UAE.
• The Congress party criticized the drop in net FDI, arguing it highlights investment uncertainty and a preference among businesses to invest abroad.