Net foreign direct investment inflow fell 96% in 2024-’25, shows RBI data
The net foreign direct investment into India plummeted by 96% to $353 million in the financial year 2024-’25, showed data from a Reserve Bank of India report released on Wednesday.
The net FDI inflow was $10.1 billion in 2023-’24 and $28 billion in 2022-’23.
Net FDI is the difference between the gross inflow of foreign investment, and the repatriation of capital by foreign companies based in India and foreign investments made by Indian firms.
In its monthly bulletin, the Reserve Bank of India stated that the net FDI had seen a decline due to rising outward foreign direct investment, or overseas investments made by Indian companies, and large-scale repatriation of capital by overseas investors.
“This is a sign of a mature market where foreign investors can enter and exit smoothly, which reflects positively on the Indian economy,” the central bank said.
It also added that repatriation and disinvestment by foreign companies doing business in India grew to $51.5 billion in 2024-’25, which was the highest in nearly a decade. This was up from $44.5 billion in the previous financial year.
However, gross FDI rose to $81 billion in 2024-’25 from $71.3 billion in the previous year. Gross FDI is the investment made by foreign entities directly into the productive assets in India. In 2022-’23, it was $71.4 billion.
“Gross FDI...
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