India's FDI Declines Amid Currency and Valuation Concerns

In October 2024, the amount of money coming into India from foreign investors, called foreign direct investment (FDI), decreased.

The total FDI inflows were $6.54 billion, which is less than the previous month and the same time last year.

More money was taken out of India by these investors, leading to a net outflow of $1.55 billion.

This happened because more money was sent back to the home countries of these investors, known as repatriations.

The Indian rupee also lost value against the US dollar, which made the returns for foreign investors smaller.

In 2025, Indian stocks did well in rupees but not in dollars because of the rupee's depreciation.

This led to record outflows of foreign portfolio investments (FPI) from Indian equities.

High market valuations in India also made it less attractive to global investors, who moved their money to cheaper markets like Korea and Brazil.

Despite these challenges, domestic investors in India are buying more, which makes the market more stable.