India's Net FDI Declines to $1.4 Billion in 2024-25 Amid Rising Outward Investments
India’s net Foreign Direct Investment (FDI) witnessed a significant decline, dropping to $1.4 billion during April 2024–January 2025 from $11.5 billion in the same period a year ago. This decline was attributed to increased repatriation by investors and a rise in outward FDI by Indian firms. However, gross FDI remained strong, growing 12.4% year-on-year (Y-o-Y) to $67.7 billion. The latest data was published in the March 2025 bulletin of the Reserve Bank of India (RBI).
Despite a surge in gross FDI inflows, India’s net FDI plummeted due to higher disinvestment and increased outward investments by Indian businesses.
This surge in capital outflow highlights a shift in investment trends, where Indian firms are actively investing abroad, leading to a net FDI decline.
The State of the Economy report by the RBI revealed that the manufacturing sector received the highest equity inflows during the period. Other top sectors included:
The focus of foreign investors on manufacturing, financial services, and infrastructure sectors aligns with India’s long-term economic growth strategy.
Over 75% of total FDI in India came from the following five countries:
These nations have consistently remained India’s top foreign investors, reflecting their long-term interest in India’s economic potential.
India made remarkable progress in attracting greenfield FDI projects—new investments in fresh business infrastructure.
This rise in greenfield investments underscores India’s growing appeal as an investment destination.
Globally, the most attractive FDI sectors in 2024 were:
In India, the top three industries attracting FDI were:
These three sectors alone accounted for 60% of total FDI projects announced in 2024. India’s renewable energy sector and semiconductor industry have gained significant traction, aligning with the government’s vision of self-reliance and sustainability.
| Parameter | 2024-25 (April–Jan) | 2023-24 (April–Jan) | Change |
|---|---|---|---|
| Net FDI | $1.4 billion | $11.5 billion | Declined |
| Gross FDI | $67.7 billion | $60.2 billion | Increased |
| Repatriation/Disinvestment | $46.1 billion | $36.9 billion | Increased |
| Outward FDI (Indian firms) | $20.2 billion | $11.8 billion | Increased |
| Top Sectors | Manufacturing, Financial Services, Energy, Communication | – | – |
| Top Investing Countries | Singapore, Mauritius, US, UAE, Netherlands | – | – |
| India’s Greenfield FDI Rank | 2nd globally (after US) | 6th in 2020 | Improved |
| India’s Share in Global Greenfield FDI | 6% (over $100 billion) | – | – |
| Emerging Investment Sectors | Metals, Renewable Energy, Semiconductors | – | – |
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