According to the RBI, Singapore, the Netherlands, the U.S., and Canada accounted for around 74% of the inflows. File.
| Photo Credit: Reuters
India attracted a total of $30.7 billion as gross foreign direct investment (FDI) in the April-June 2026 quarter, the highest level in at least 15 years. This strong inward flow overshadowed outflows, resulting in net FDI in the quarter rising to its highest level since June 2022.
An analysis of the latest data released by the Reserve Bank of India (RBI) shows that net FDI turned positive again in June 2026, with inflows exceeding outflows by $1.3 billion that month, driven by an increase in investment entering the country and a fall in outward investment by Indian companies.
A longer-term analysis also shows that inflows are starting to outpace outflows on a more regular basis. For instance, while net FDI was negative in six out of the last 12 months, it was negative in only one of the last six months.
Strong inflows
Gross inflows in June 2026, or the total amount of direct investment that entered the country that month, stood at $9.3 billion. This was 53% higher than in May, but just a little lower than the $9.6 billion that entered the country in June last year.
According to the RBI, Singapore, the Netherlands, the U.S., and Canada accounted for around 74% of the inflows. The manufacturing sector received the highest share of inflows, followed by electricity generation, computer, and communication services.
On a quarterly basis, gross inflows stood at $30.7 billion in April-June 2026, which was nearly 46% higher than in the quarter ended March 2026 and about 15% higher than June 2025 quarter.
This was also the highest inflow recorded in the accessible data, which goes back 60 quarters or 15 years to the September 2011 quarter. According to the RBI, this underscores the “continued interest of global investors in India”.
Mixed signals from outflows
Total outflows of direct investment stood at $7.9 billion in June 2026, which was nearly 30% higher than in May, and 8.6% higher than in June of last year. On a quarterly basis, total outflows stood at $22.8 billion. As a result, net FDI stood at $1.3 billion in June 2026 and $7.8 billion in the April-June 2026 quarter.
Within outflows, repatriation and disinvestment by foreign companies operating in India grew to $5.8 billion in June 2026, 57% higher than in May, and 36% higher than in June last year.
Outward FDI by Indian companies, on the other hand, fell to $2.1 billion during this period, down 13% over May 2026 and 30% lower than in June 2025.
Published – August 26, 2026 03:29 pm IST
