Shocking Truths Behind India's FDI Revealed

India continues to attract strong Foreign Direct Investment (FDI), but a significant portion of the inflows is being offset by investments flowing out of the country. According to Union Minister of State for Commerce and Industry Jitin Prasada, India received gross FDI worth $81.04 billion (around ₹7 lakh crore) during the 2024-25 financial year. However, after accounting for outward investments, the net FDI stood at only $1 billion (around ₹8,600 crore).

The minister informed the Lok Sabha that net FDI in 2024-25 declined by $9.2 billion compared to 2023-24 and by $27 billion compared to 2022-23. He attributed the outflow to Indian companies expanding globally, acquiring strategic overseas assets, gaining access to international markets and advanced technologies, and foreign firms selling their stakes in Indian companies and repatriating the proceeds.

The situation showed some improvement in 2025-26, with net FDI rising to $7.65 billion (around ₹72,860 crore), an increase of $6.65 billion over the previous financial year. RBI data also showed that India received a record $94.53 billion in gross FDI during the year. Even so, after deducting outward investments, net FDI remained at $7.65 billion, highlighting the growing trend of Indian capital moving overseas.