Archive · 24 Jul 2025
India's Net FDI Plunges 98% Amid Investor Caution
Imagine India getting money from other countries to build businesses and create jobs.
In May 2025, this money slowed down a lot.
The amount of money coming in was much less than last year.
At the same time, investors took more money back home.
Experts are worried because this type of investment is usually stable.
Even though the amount of money coming in decreased, India still has a lot of money saved up.
India's reserves are enough to pay for many months of imports.
This shows that even though the money slowed, India is still stable.
India's net FDI plummeted 98% to $35 million in May 2025.
Gross FDI inflows decreased by 11% year-on-year to $7.2 billion.
FDI repatriation surged by almost 24%, reaching $5 billion.
Four countries accounted for over 75% of total FDI inflows in May.
Despite the FDI drop, foreign exchange reserves remain strong at $696.7 billion.
- Who
- Overseas investors and India.
- What
- India's net foreign direct investment (FDI) decreased by 98% in May 2025.
- When
- In May 2025.
- Where
- India.
- Why
- Due to a fall in gross inflows and a surge in repatriation.
Economists' Concern
N/A
Investment Concerns
Economists' Concern
Experts note that the fall in net FDI raises concerns.
N/A
N/A
- Net FDI (May 2025)
- $35 million
- FDI Drop (Year-on-Year)
- 98%
- Gross FDI Inflows (May)
- $7.2 billion
- FDI Repatriation Increase
- Nearly 24%
- Forex Reserves
- $696.7 billion