FX.co ★ Indian Net FDI Turns Negative in August

In August 2025, India experienced a negative net foreign direct investment (FDI), marking the first such occurrence in the current fiscal year. This shift was attributed to a reduction in gross inflows coupled with an increase in repatriation activities. According to the Reserve Bank of India's (RBI) October Bulletin released on Monday, net FDI saw an outflow of USD 0.62 billion, a significant change from the USD 5.04 billion inflow recorded in July. August's gross FDI into India declined to USD 6.05 billion, a notable dip from July's over four-year peak of USD 11.11 billion. Concurrently, repatriation by foreign enterprises surged to USD 4.93 billion, up from USD 3.80 billion in the preceding month. The leading contributors to India's FDI from April to July 2025 were Singapore, the United States, Mauritius, the UAE, and the Netherlands, which collectively accounted for 76% of total inflows. During this period, the sectors drawing the most FDI were manufacturing, computer services, business services, communication services, and electricity generation and distribution.