Net FDI stays negative for fourth month as repatriations rise sharply

Net FDI remained in negative territory for the fourth consecutive month in December as repatriations rose sharply, even as gross inflows strengthened across key sectors and source countries

The net Foreign Direct Investment (FDI) remained negative for the fourth consecutive month due to a rise in repatriation, the Reserve Bank of India (RBI) data showed.

 

The net FDI stood at negative $1.61 billion as compared to negative $189 million in December 2024. Repatriation in December 2025 jumped to $7.5 billion as against $5.40 billion in the year-ago period.

 

Gross inward FDI was up at $8.58 billion during April–October from $7.32 billion a year ago. Repatriations in the month stood at $7.45 billion as compared to $5.40 billion in December 2024.

 

Net outward FDI increased by 30.5 per cent year-on-year in December 2025 to $2.74 billion.

 

 

According to the bulletin, “During April–December 2025, FDI remained higher than in the same period last year, both in gross and net terms. Gross inward FDI remained robust in December, with Singapore, the Netherlands and Mauritius accounting for more than 80 per cent of total inflows.”

 

The major recipient sectors were transport, manufacturing, computer services, and electricity and other energy generation, distribution and transmission.

 

Key destinations for outward FDI were Singapore, the US, the UAE, the UK and the Netherlands, and the major sectors included financial, insurance and business services, and wholesale or retail trade, restaurants and hotels.