India's Net Foreign Direct Investment Falls by 98.2% as Compared to Last Year

New Delhi: The net foreign direct investment (FDI) in India fell significantly by 98.2 per cent to $40 million in May 2025, on higher repatriation/divestment and outward investments from the country.

A year ago, in May 2024, the net FDI, which is the difference between gross inflows and outflows, stood much higher at $2.2 billion, reported Business Standard, citing data from the Reserve Bank of India (RBI).

While repatriation\divestment stood at $5.0 billion for May 2025,, up from $4.1 billion in May 2024, outward FDI in May 2025 was $2.1 billion, higher than $1.8 billion in May 2024.

Gross FDI was $7.2 billion in May 2025 which was also lower than $8.1 billion in May 2024.

According to the State of the Economy article in the RBI bulletin for July 2025, more than three-fourths of total FDI inflows in May 2025 was accounted for by Singapore, Mauritius, the UAE and the US.

Manufacturing, financial and computer services were the top recipient sectors.

In the first two months of the current financial year, cumulative net FDI was flat at $3.9 billion in April-May 2025. The figure was $4.0 billion in April-May 2024.

The outward FDI from India registered a significant increase, rising to $5.3 billion in April-May 2025 from $3.1 billion in April-May 2024, reported Business Standard.

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