Foreign Direct Investments

Net foreign direct investment (FDI) declined in recent years, from USD 27.99 billion in FY23 to USD 6.95 billion in FY26, due to increased repatriation by foreign investors and rising Overseas Direct Investment (ODI) outflows, Parliament was informed on Tuesday. Net FDI moderated to USD 10.13 billion in FY24 and further to USD 960 million in FY25, Minister of State for Finance Pankaj Chaudhary said in a written reply to the Rajya Sabha quoting RBI data. In gross terms, he said, India registered a record FDI inflow of USD 94.84 billion in FY26 as compared to USD 80.61 billion in FY25. "The decline in net FDI in recent years recovered to USD 6.95 billion in FY26 from USD 0.96 billion in FY25. The recent trend in net FDI inflows is associated with increased repatriation/disinvestment by foreign investors and rising Overseas Direct Investment (ODI) outflows," he said. The ODI outflow on account of liberalized ODI rules notified in 2022 is helping Indian entities enhance their business

The government is considering a proposal to ease foreign direct investment (FDI) norms for downstream investments to boost overseas fund inflows and create jobs, sources said. The proposal is currently under inter-ministerial discussions, they said. The government has in recent years undertaken a series of reforms aimed at liberalising the country's FDI policies with the goal of stimulating economic growth and encouraging foreign capital inflows. To promote FDI, the government has put in place an investor-friendly policy, with most sectors open to 100 per cent overseas investments under the automatic route except for a few strategically important sectors. More than 90 per cent of FDI inflows are received under the automatic route. One of the sources said that to ensure that India remains an attractive and investor-friendly destination, the government reviews the FDI policy on a continuous basis and makes changes from time to time after holding extensive consultations with ...

NITI Aayog's investment index highlights wide disparities among states, underscoring the need for governance reforms, stronger institutions and balanced regional growth

When we go back to treaties, we should think more about how this will work out. It will help to have a pre-funded, ring-fenced pool to honour adverse awards

A combined approach of an FTA with an investment protection agreement will help India re-establish its position as an attractive destination for FDI

Gross FDI inflows rose 65 per cent year-on-year, while lower repatriation by foreign investors helped push net foreign direct investment sharply higher

UAE-based lender completes ₹26,000 crore capital infusion into RBL Bank, marking the largest foreign direct investment in India's banking sector

Easing West Asia tensions may stabilise India's external accounts, but policymakers must focus on boosting FDI, exports and long-term capital inflows

Gross FDI inflows may surpass $100 billion in FY27, RBI Deputy Governor Poonam Gupta said, citing strong investment momentum despite global uncertainty

Investors remain interested in India, but the AI theme is dominating global conversations, says Kulkarni

Invest UP lines up Asian capital to fuel state's trillion-dollar ambition

India's outward foreign direct investment commitments fell 10.8 per cent year-on-year in April, led by lower guarantees and debt commitments

The revised Press Note 3 framework may speed up startup deals by allowing limited China-linked exposure through the automatic FDI route, while keeping direct Chinese investment under approval

The move to allow 100 per cent FDI in the insurance sector is expected to boost foreign interest in the sector

The total foreign direct investment (FDI) in India has crossed USD 88 billion during April-February FY26, and it is likely to reach USD 90 billion in the last fiscal, a top government official said on Thursday. DPIIT Secretary Amardeep Singh Bhatia said that the government has taken a series of measures to attract FDI. He said that during April-February 2025-26, inflows have crossed USD 88 billion and "hopefully crossing USD 90 billion" in the full fiscal 2025-26. Reform measures, free trade agreements and fast-growing economic growth are helping the country to attract healthy investments, he said.

Rising repatriation is outpacing overseas spending.

India's overseas investments hit a decade high, led by equity flows and major bets like Reliance's proposed US refinery

Overseas investment declines year-on-year and sequentially, with moderation in equity commitments and mixed trends in loans and guarantees

The government has amended Press Note 3 under the FDI policy, allowing investors from countries sharing land borders with India to hold up to 10 per cent non controlling stakes via the automatic route

India weathered the Trump tariff shock better than expected, but high public debt and slower fiscal consolidation pose risks even as trade deals lift growth and investor sentiment