The data, released as part of the RBI’s May edition of its monthly bulletin, shows that repatriation and foreign investments by Indian companies have increasingly played a part in lowering India’s net FDI figures ever since the pandemic. File
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Net foreign direct investment (FDI) into India crashed by more than 96% to just $353 million in 2024-25 as compared to the previous year, the latest data from the Reserve Bank of India shows. 

Net FDI is basically gross FDI, which is the total money coming in, minus the money being repatriated out by foreign companies doing business in India and the outward FDI by Indian companies. 

While gross FDI into India remained strong, the net FDI figure was dragged down by increased repatriation of money back to their home countries by foreign companies doing business here, and higher foreign investments by Indian companies.

The data, released as part of the RBI’s May edition of its monthly bulletin, shows that repatriation and foreign investments by Indian companies have increasingly played a part in lowering India’s net FDI figures ever since the pandemic. 

So, where the net FDI figure stood at $44 billion in the pandemic year of 2020-21, it fell to $38.6 billion the next year, $28 billion in 2022-23, $10.1 billion in 2023-24, and finally to just $353 million ($0.4 billion) in 2024-25.

“Net FDI moderated to US$0.4 billion during 2024-25 from US$10.1 billion a year ago, reflecting the rise in net outward FDI and repatriation FDI,” the RBI acknowledged in its report.

Repatriation and disinvestment by foreign companies doing business in India grew to $51.5 billion 2024-25, the highest in at least a decade, up from $44.5 billion in the previous year.  

“This is a sign of a mature market where foreign investors can enter and exit smoothly, which reflects positively on the Indian economy,” it added. 

Gross investment, on the other hand, has remained strong, rising to $81 billion in 2024-25 from $71.3 billion the previous year, and $71.4 billion in 2022-23.

“Gross FDI inflows remain concentrated in manufacturing, financial services, electricity and other energy, and communication services sectors, with a share of more than 60%,” the RBI added. “Singapore, Mauritius, the UAE, the Netherlands, and the U.S. accounted for more than 75% of the flows during this period.”

The other major factor significantly pushing down India’s net FDI figure was the outward FDI (OFDI) by Indian companies. In 2024-25, Indian companies invested a total of $29.2 billion in other countries, 75% higher than the previous year.

“Singapore, the U.S., UAE, Mauritius and the Netherlands together accounted for more than half of the rise in OFDI; moreover, sector-wise analysis reveals that financial banking and insurance services, followed by manufacturing; and wholesale, retail trade, restaurants and hotels accounted for more than 90% of the rise of OFDI,” the RBI noted.