Archive · 25 Aug 2026
India's Dollar Economy: Why Did $230 Billion Flee?
India received a lot of money from foreign investors over six years.
The total amount coming in was about $366 billion.
But about $230 billion also left the country through repatriation or disinvestment.
That made the writer question whether India gained much foreign investment overall.
The economy performed very well during the first four years of Narendra Modi’s tenure.
This period lasted until around mid-2018.
Oil prices fell sharply, while the government kept fuel prices from falling by the same amount.
The article also highlights GST, Aadhaar and Jan Dhan accounts as important economic and financial changes.
The excerpt asks why so much money left, but does not yet provide the full answer.
India received $366 billion in fresh inward FDI over six years.
About $230 billion was repatriated or disinvested from India during the same period.
The article says net FDI fell to approximately zero, challenging whether the outcome was truly non-negative.
India’s economy grew strongly during the first four years of Prime Minister Narendra Modi’s tenure, until mid-2018.
Lower global crude prices, unchanged pump prices, GST, Aadhaar and Jan Dhan accounts shaped the period described.
- Who
- India, foreign investors and the government led by Prime Minister Narendra Modi.
- What
- India received $366 billion in fresh inward FDI while $230 billion was repatriated or disinvested, bringing reported net FDI close to zero.
- When
- Over the six years discussed; the described economic upswing lasted until mid-2018.
- Where
- India.
- Fresh inward FDI
- $366 billion over six years
- Repatriated or disinvested capital
- $230 billion over six years
- Reported net FDI
- The article’s Part 1 described net FDI as falling to zero
- Crude prices
- Fell from about $100 per barrel to below $50 per barrel
- Inflation
- Contracted to 5 percent
- Economic growth
- Real GDP growth rose above 8 percent
- FDI inflows during the upswing
- Nearly doubled to $60 billion