09/06/2026
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09/06/2026
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NEW DELHI, Jun 9: India’s net foreign direct investment (FDI) has fallen sharply to a near trickle, as rising profit repatriation and investor exits outweigh otherwise steady inflows, according to recent data.
Net FDI into India stood at just $3 billion in the first nine months of fiscal year 2025–26, down from a marginal $1 billion in 2024–25, when outflows of $80 billion largely offset inflows of $81 billion.
While gross FDI inflows have continued to rise since 2023–24, much of the incoming capital has been neutralised by large-scale repatriation and disinvestment. This includes foreign investors exiting positions or repatriating earnings, particularly following a wave of stock market listings by foreign companies in India after 2021, reports Times Of India.
Repatriation and disinvestment alone accounted for $44.6 billion between April and December 2025, making it the single largest driver of capital outflows. Analysts say this reflects a maturing investment cycle, where early-stage capital is being withdrawn after profit realisation.
Indian companies investing abroad have also contributed to outward flows, directing capital into sectors such as finance, business services, manufacturing and trade, highlighting diverging global investment priorities between inbound and outbound capital.
A significant portion of India’s FDI continues to be routed through financial hubs such as Singapore and Mauritius, which remain key intermediaries for tax planning, treaty advantages and corporate structuring.
Regionally, FDI remains highly concentrated, with Maharashtra, Karnataka, Gujarat, Tamil Nadu and Haryana together accounting for more than 80% of total inflows, underscoring the role of established industrial ecosystems and infrastructure in attracting foreign capital.
