Net FDI dips to $1.4 bn in Apr-Jan 2025; gross FDI rises 12.4%: RBI data

The net foreign direct investment (FDI) in India fell to $1.4 billion in the 10 months of 2024-25 (April 2024-January 2025) down from $11.5 billion the previous year, due to increased repatriation and outward FDI from India. Nonetheless, gross FDI continued to be high, experiencing a year-on-year (Y-o-Y) increase of 12.4 per cent, reaching $67.7 billion during the April 2024-January 2025 timeframe, up from $60.2 billion in April 2023-January 2024, as per data from the Reserve Bank of India (RBI).

Repatriation/disinvestment by direct investors in India increased to $46.1 billion during the 10-month period of 2024-25, compared to $36.9 billion recorded from April 2023 to January 2024, as per RBI data. Additionally, outward FDI from Indian companies surged to $20.2 billion in April 2024-January 2025, up from $11.8 billion the previous year.

The March 2025 bulletin of the RBI’s State of the Economy report highlighted that, by sector, manufacturing attracted the largest portion of equity inflows, with financial services, electricity and other energy, and communication services following.

During the period, more than 75 percent of the flows originated from Singapore, Mauritius, the US, the UAE, and the Netherlands.

Regarding worldwide announced greenfield FDI initiatives, India held the second position after the US in 2024, rising from the sixth spot in 2020. Among the global FDI projects announced, totaling $1.8 trillion in 2024, India represented approximately 6 percent (more than $100 billion). New sectors—including renewables, communications, semiconductors, and metals—continued to be the most appealing FDI sectors worldwide in 2024. In India, semiconductors, metals, and renewable energy dominated the industries, representing roughly 60 percent of the overall announced FDI projects in 2024, it noted.