Net foreign direct investment moderates to US$ 0.4 billion in FY25 from US$ 10.1 billion in previous year

Reserve Bank of India or RBI stated in a latest monthly update that Net foreign direct investment (FDI) moderated to US$ 0.4 billion during 2024-25 from US$ 10.1 billion a year ago, reflecting the rise in net outward FDI and repatriation FDI. This is a sign of a mature market where foreign investors can enter and exit smoothly, which reflects positively on the Indian economy. Nonetheless, gross inward FDI witnessed a double-digit growth of 13.7 per cent and stood at US$ 81 billion during 2024-25. Gross FDI inflows remain concentrated in manufacturing, financial services, electricity and other energy, and communication services sectors, with a share of more than 60 per cent. Singapore, Mauritius, the UAE, the Netherlands, and the US accounted for more than 75 per cent of the flows during this period. In 2024-25, India's net outward FDI (OFDI) reached US$ 29.2 billion, a growth of more than 75 per cent over the previous year.

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