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India’s net FDI turns negative in August amid higher outbound flows
India’s net FDI turned negative in August as gross inflows fell and outflows rose, reflecting global risk and repatriation trends.
According to the latest data from the Reserve Bank of India, India’s net foreign direct investment (FDI) turned negative in August 2025 as repatriation of funds by foreign firms surged and fresh inflows slipped. Gross inward FDI dropped to around US $6 billion from a four-year peak of US $11.11 billion in July, while outflows reached nearly US $4.9 billion. The reversal reflects global risk aversion, sector-specific delays and favourable times to realise investments. Policymakers view the decline as temporary, expecting structural reforms and domestic consumption momentum to restore inflows in FY26.