Net FDI Outflow of $1.55 Billion in Oct: Foreign Investors Repatriate Funds, Indian Orgs Put Money Abroad

New Delhi: Data released by the Reserve Bank of India (RBI) on Monday (December 22) indicated that in October this year, there was a net Foreign Direct Investment (FDI) outflow of $1.55 billion. Prior to that, in September, the FDI outflow stood at $1.66 billion, reported Indian Express.

Gross FDI inflow in October amounted to $6.54 billion, which is lesser than $7 billion in September. A year before, in October 2024, this figure stood at $7.17 billion.

The net FDI is calculated after adjusting for investments that are repatriated by foreign companies and overseas investments made by Indian companies. In a first such instance, these two factors together exceeded $8 billion for the second month running in October.

The net outflow of FDI in October was mainly owing to foreign investors repatriating their funds and Indian companies investing abroad.

Earlier in June this year, outward FDI had increased to $5.03 billion on a year-on-year basis, which is more than $2.9 billion, the figure for the same month last year.

When expressed as a financial commitment, outbound FDI comprises of equity, loans, and guarantees.

According to the RBI data, equity commitments rose more than three-fold to $2.04 billion in June as against $670.7 million in June last year. It also doubled from $987.1 million in May.

On the other hand, foreign portfolio investors (FPIs) pulled out a total of Rs. 77,901 crore of shares from Indian markets during the first half of 2025. The highest outflows were seen in the IT sector, followed by fast moving consumer goods (FMCG) and power sectors.

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