Archive · 22 Jul 2026
India's Net FDI Expected to Rise in FY27
India is expected to see a big increase in net foreign direct investment (FDI) in the financial year 2026-27.
Economists think it will reach around $15 billion, which is the highest in four years.
This is because more money is coming into the country, and less is being taken out.
In the first two months of this year, net FDI was already 160% higher than last year.
However, some experts say that for this trend to continue, the global economy needs to improve and India needs to become more integrated into global supply chains.
Indian companies are also investing more overseas, which puts some pressure on net FDI.
Net FDI inflows expected to rise to $15 billion in FY27, a four-year high.
Gross FDI inflows hit a record high of $94.8 billion in FY26.
Repatriation outflows grew by 5% in FY26 but are expected to taper off.
Outward FDI by Indian companies grew by 20% in FY26 and is expected to remain high.
Economists believe a more favorable global economic outlook is needed for sustained FDI growth.
- Who
- Economists, Indian companies, foreign investors
- What
- Net FDI inflows expected to rise in FY27
- When
- FY27 (April 2026 - March 2027)
- Where
- India
- Why
- Due to higher gross inflows and slower repatriation outflows
Optimistic View
Cautious View
FDI Growth
Optimistic View
Economists project net FDI inflows to rise to a four-year high of around $15 billion in FY27 due to higher gross inflows and slower repatriation outflows.
Cautious View
Dhiraj Nim from ANZ Bank India believes that a more benign global growth outlook is necessary for significant FDI inflows, and expects net FDI inflows to be around $10-$15 billion in FY27.
Repatriation Trends
Optimistic View
CareEdge Ratings suggests that repatriation outflows have likely peaked and will taper off, reinforcing the view that net inflows will improve in FY27.
Cautious View
Gaura Sen Gupta from IDFC First Bank notes that while repatriation pressure will be lower, overseas investments by Indian companies will continue to put pressure on net FDI flows.
- Net FDI in FY27
- $15 billion (projected)
- Net FDI in FY26
- $6.9 billion
- Gross FDI in FY26
- $94.8 billion
- Repatriations in FY26
- $54 billion
- Outward FDI in FY26
- $33.84 billion