Indian Net FDI Turns Negative in August

India's net foreign direct investment (FDI) turned negative in August 2025, marking the first time in the current fiscal year (2025/26), due to a moderation in gross inflows and a rise in repatriation.

Net FDI recorded an outflow of USD 0.62 billion, after posting an inflow of USD 5.04 billion in July, according to data from the RBI's October Bulletin released on Monday.

Gross foreign direct investment into India fell to USD 6.05 billion in August, down from a more than four-year high of USD 11.11 billion in July.

Meanwhile, repatriation by foreign companies jumped to USD 4.93 billion, compared to USD 3.80 billion in the previous month.

For April–July 2025, Singapore, the US, Mauritius, the UAE, and the Netherlands were the top sources of FDI, accounting for 76% of total inflows.

The largest beneficiaries of FDI during the period were the manufacturing, computer services, business services, communication services, and electricity generation & distribution sectors.