India’s net FDI negative for second straight month in September as outflows exceed inflows

The Hindu
The Hindu
1w ago 13 views
India experienced negative net foreign direct investment (FDI) for the second consecutive month in September 2025, with outflows exceeding inflows by $2.4 billion. This trend highlights concerns about investment dynamics in the country.
India’s net FDI negative for second straight month in September as outflows exceed inflows
A What happened
India's net foreign direct investment (FDI) was negative for the second month in a row in September 2025, with a total of -$2.4 billion. This figure indicates that outflows from the country surpassed inflows, as foreign companies repatriated profits and Indian firms invested abroad. Gross FDI inflows rose to $6.6 billion, a 4.3% increase from the previous year, but this was overshadowed by a 64.4% increase in investments made by Indian companies overseas, totaling $3.8 billion. The overall direct investment outflow reached $9 billion, compared to the $6.6 billion inflow. Despite these short-term challenges, longer-term trends show a more positive FDI landscape, with quarterly net FDI up 172% year-on-year for Q2 and a 104% increase for the first half of the financial year.

Key insights

  • 1

    Negative FDI Trend

    India's net FDI was -$2.4 billion in September 2025.

  • 2

    Increased Outflows

    Indian companies' investments abroad surged by 64.4%.

  • 3

    Gross FDI Growth

    Gross FDI inflows rose to $6.6 billion, a 4.3% increase.

  • 4

    Long-term Improvement

    Net FDI increased by 104% in the first half of 2025.

Takeaways

The negative net FDI in September 2025 raises concerns about investment trends in India, but longer-term data suggests a more favorable outlook for foreign direct investment.

Topics

Business Economy