India’s FDI Inflows Surge to $8.8 Billion in April 2025: RBI Bulletin

India witnessed a significant surge in foreign direct investment (FDI) inflows, reaching $8.8 billion in April 2025, according to the Reserve Bank of India’s (RBI) monthly bulletin. This marks a sharp rise compared to $5.9 billion in March 2025 and $7.2 billion in April 2024. The spike reflects growing global confidence in India’s macroeconomic stability and sectoral resilience, especially in manufacturing and business services, which accounted for nearly half of the FDI.

Why in News?

The news is significant as it highlights A notable increase in FDI inflows into India in April 2025. Strong performances in greenfield investments, NRI deposits, and foreign portfolio investments (FPI). India’s emergence as a major investment destination, especially in the digital economy and capital goods sectors. Strengthening of the Indian rupee and external balance, contributing to macroeconomic stability.

Key Highlights from RBI Bulletin

FDI Inflows

• April 2025: $8.8 billion
• March 2025: $5.9 billion
• April 2024: $7.2 billion

Sectors Receiving FDI

• Manufacturing and Business Services: ~50% of total inflows
• Telecommunication, Capital Goods, and Services also prominent

India’s Global Position

• Ranked 16th globally in FDI inflows
• Secured $114 billion in greenfield investments in digital economy sectors (2020–2024)
• Highest greenfield investment among Global South countries

Foreign Portfolio Investment (FPI)

• Net FPI inflows in May 2025: $1.7 billion

Driven by,

• India-Pakistan ceasefire
• US-China trade truce
• Strong Q4 corporate earnings (FY 2024–25)
• Equity segment saw gains for the third consecutive month

Debt Market Activity

• Previous month saw outflows
• May 2025: Outflows paused despite low yield differential (<2%) between India and US bonds

NRI Deposits

• Total NRI deposits in April 2025: $165.43 billion
• April 2024: $164.68 billion
• FCNR(B) Deposits: Grew by 9% year-on-year
• April 2025 balance: $33.08 billion (up from $30.26 billion)
• Monthly inflow: $483 million vs. $272 million (April 2024)

Exchange Rate & Forex Reserves

• Rupee appreciated by 0.4% vs. US dollar in May 2025
• Forex reserves sufficient to cover 11+ months of imports
• Stable rupee performance amid global uncertainties