BS EDIT: Why Is Net FDI in India at a 20-Year Low?

By Business StandardPublished On May 30, 2025

The Numbers Tell a Story

India received $81 bn gross FDI in FY25, but net FDI was just $0.35 bn — the lowest in two decades

Where Did the Money Go?

Over $51 bn repatriated by foreign firms; Indian outbound FDI surged 75% to $29.2 bn in FY25

What It Might Indicate

These outflows may reflect deeper investor concerns — about demand conditions, valuation gains, or policy challenges

A Curious Case of Indian Firms

Indian companies are investing more abroad, even amid global uncertainty, but showing domestic caution

A Call for Nuanced Policy

Government must probe causes without curbing capital mobility. Overregulation can hurt investment climate

Why FDI Still Matters

FDI brings not just capital, but also technology and best practices. Understanding its dynamics is key to sustained growth