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Net foreign direct investment (FDI) inflows stood at $35 million in May 2025, 98% lower than the $2.2 billion seen in May 2024 and 99% lower than the $3.9 billion in April 2025, according to new data released by the Reserve Bank of India on Wednesday (July 23, 2025).
Net FDI is the gross amount coming into India minus the money sent abroad by foreign companies operating in India (through repatriation or disinvestment) and the investments abroad made by Indian companies (outward FDI).
The reason behind this reduction in net FDI flows was not only that gross FDI flows were lower in May 2025 than in both May 2024 and April 2025, but also because the quantum of repatriation was higher.
According to the data, the gross FDI coming into India stood at $7.2 billion in May 2025, down 18% from the $8.7 billion in April 2025, and 11% lower than in May 2024.
Simultaneously, the level of money sent out of the country by foreign companies operating here increased in May. Repatriations and disinvestment by foreign companies stood at $5 billion in May 2025, more than 200% higher than in April 2025 and nearly 24% higher than in May last year.
Foreign investments made by Indian companies, at $2.1 billion in May 2025, were 34% lower than in April but 18.5% higher than in May last year.
Published – July 23, 2025 05:35 pm IST
