Net FDI, which is the difference between the total direct investment coming in and the total going out, was positive in seven out of the last eight months. File
| Photo Credit: Reuters
Net foreign direct investment (FDI) remained positive for the third consecutive month in August 2026, with inflows exceeding outflows by $3.3 billion, according to the latest data by the Reserve Bank of India (RBI). This was driven by robust inflows even as outward investment by Indian companies fell.
“FDI flows continued to remain robust in August 2026, supported by strong gross inflows and moderation in outward FDI,” the RBI said in its monthly Bulletin. “Communication, miscellaneous services and manufacturing received more than two-thirds of the FDI inflows.”
Net FDI, which is the difference between the total direct investment coming in and the total going out, was positive in seven out of the last eight months. This is a significant turnaround from the five consecutive months of negative net FDI India saw during August-December 2025.
Money flowing in
The data shows that gross FDI into India, or the total that entered the country as direct investment, stood at $11.1 billion in August 2026, which was 24% lower than in the previous month, but nearly 68% higher than in August last year.
“The U.S., Singapore and Mauritius were the major source countries, accounting for about 72% of FDI inflows,” the report noted.
Total outflows increased marginally to $7.7 billion in August 2026 as compared to $7.2 billion in July, and $6.7 billion in August 2025. However, in this, the driver was the repatriation by foreign companies operating in India rather than outward investment by Indian companies.
Less investments going out
“Outward FDI flows moderated in August with more than half being directed towards Singapore, the Netherlands, and the U.S,” the RBI said. “The major sectors of outward FDI were agriculture & mining, financial, insurance & business services, and manufacturing — together accounting for more than two-thirds of the outward flows.”
Remittances increased to $5.8 billion in August 2026, which was nearly 52% higher than in July, and 28% higher than in August last year. This was largely balanced out by a fall in outward FDI, which fell to $1.9 billion. This was more than 43% lower than in July 2026 and 11% lower than in August last year.
Looking at the longer time-period of April-August 2026, the RBI noted that gross inward FDI and net FDI flows were both higher during this period.
A slowdown in the pace of outward FDI along with sustained higher gross FDI inflows supported net FDI flows,” the RBI said. “Financial services, communication services, computer services and manufacturing accounted for around 73% of total FDI equity inflows during April-August 2026.”
Published – October 23, 2026 09:03 pm IST
