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Net Foreign Direct Investment (FDI) into India fell 159% in August 2025, with more money leaving the country than entering it that month, according to official data. This is the second time this financial year that outflows have exceeded inflows.
However, the picture is reversed when looked at over a longer time period, with net FDI in April-August 2025 more than 121% higher than in the same five-month period of the previous year.
An analysis by The Hindu of data released by the Reserve Bank of India shows that the repatriation and disinvestment by foreign companies operating in India and the investments done abroad by Indian companies — which taken together is the total money leaving the country — was higher than the gross amount that was invested into India in August 2025.
Investment breakup
Gross investments into India stood at $6,049 million in August 2025, 30.6% lower than their level in August last year and 45.5% lower than in July this year. This was the lowest level of gross inflows in this financial year so far.
The amount repatriated and disinvested by foreign companies operating in India stood at $4,928 million in August 2025, down 5.4% over the amount in August 2024 but nearly 30% higher than the amount in July 2025.
Foreign investments by Indian companies contracted 29.7% in August 2025 to $1,736 million, the lowest in this financial year.
Taken together, this meant that net FDI into India — the difference between the gross amount coming in and the total amount going out — stood at -$616 million in August 2025, 159% lower than in August last year. That is, more money left the country in August 2025 than entering it that month.
This had happened in May 2025 as well, albeit at a smaller scale, as net FDI had stood at -$5 million during that month.
Rosier long-term
However, the FDI picture looks better when looked at over a longer timeframe.
Net FDI in the April-August 2025 period was $10,128 million, more than 121% higher than in the same period of last year. This was driven by a 18.2% increase in gross inflows ($43,760 million) entering the country and a 6.1% contraction in repatriation and disinvestment ($21,205 million) leaving India during this period.
Foreign investment by Indian companies stood at $12,427 million in the April-August 2025 period, up nearly 26% over the same period of the previous year.
Published – October 21, 2025 01:45 pm IST
