Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Key Trend
- Net FDI stood at –$2.4 billion in September 2025, marking the second straight month of negative FDI.
- Net FDI turned negative because outflows exceeded inflows, as per RBI data.
FDI Inflows (Gross)
- Gross FDI into India was $6.6 billion in September 2025.
- This was 4.3% higher than September 2024 and 9.1% higher than August 2025.
- Despite this improvement, inflows were insufficient to offset rising outflows.
FDI Outflows
- Total FDI leaving India reached $9 billion in September 2025.
- Repatriation of profits by foreign firms operating in India slightly decreased by 0.2% to $5.2 billion.
- Indian companies’ overseas direct investment increased sharply, rising 64.4% to $3.8 billion.
- Combined, these two components pushed net FDI into the negative zone.
Net FDI Calculation
- Net FDI = Inflows ($6.6 bn) – Outflows ($9 bn) = –$2.4 bn.
- Net FDI was also negative in August 2025 at –$0.6 billion.
Nature of Data
- Figures relate to direct investment, which includes investment in productive assets, not portfolio investment involving securities or shares.
Broader Quarterly Outlook
- Despite month-wise negativity, the July–September 2025 quarter showed a 15.4% rise in gross FDI compared to the same quarter in 2024.
- This indicates stronger long-term investor interest despite short-term volatility.