India's FDI inflows slip to $6.54 billion in October as repatriations deepen net outflow pressures
Gross foreign direct investment into India fell to $6.54 billion in October from $7.00 billion a month ago and $7.17 billion a year ago, according to the Reserve Bank of India
- Dec 23, 2025,
- Updated Dec 23, 2025 7:26 AM IST
Foreign investment flows into India weakened in October, with headline inflows slipping and net flows turning decisively negative as repatriations gathered pace, according to the latest data from the central bank.
Gross foreign direct investment into India fell to $6.54 billion in October from $7.00 billion a month ago and $7.17 billion a year ago, according to the Reserve Bank of India bulletin released Monday. The net FDI recorded an outflow in October due to higher repatriation.
On a net basis, FDI recorded an outflow of $1.55 billion in October as repatriations rose to $4.99 billion during the month. Net FDI had seen an outflow of $129 million a year ago, and in September, the net FDI outflow was $1.66 billion with repatriations of $4.61 billion.
Manufacturing, financial services, electricity, and communication services were the biggest recipients of the inflows. Singapore, Mauritius and the US cumulatively accounted for more than 70% of the gross FDI inflows, according to an RBI paper. Outward FDI flow in October was mainly directed towards financial, insurance, and business services, followed by wholesale, retail trade and manufacturing. Singapore, the United Arab Emirates and the US were major destinations for outward FDI, the paper said.
Meanwhile, foreign portfolio investments saw a net inflow of $3.42 billion in October against an outflow of $621 million in September. Driven by the equity segment, the net FPI was negative as of Dec. 18, the RBI paper said. The uncertainty surrounding the India-US trade deal and investors' caution around high domestic valuations kept net FPI flows to India muted in recent months, the paper added.
Foreign investment flows into India weakened in October, with headline inflows slipping and net flows turning decisively negative as repatriations gathered pace, according to the latest data from the central bank.
Gross foreign direct investment into India fell to $6.54 billion in October from $7.00 billion a month ago and $7.17 billion a year ago, according to the Reserve Bank of India bulletin released Monday. The net FDI recorded an outflow in October due to higher repatriation.
On a net basis, FDI recorded an outflow of $1.55 billion in October as repatriations rose to $4.99 billion during the month. Net FDI had seen an outflow of $129 million a year ago, and in September, the net FDI outflow was $1.66 billion with repatriations of $4.61 billion.
Manufacturing, financial services, electricity, and communication services were the biggest recipients of the inflows. Singapore, Mauritius and the US cumulatively accounted for more than 70% of the gross FDI inflows, according to an RBI paper. Outward FDI flow in October was mainly directed towards financial, insurance, and business services, followed by wholesale, retail trade and manufacturing. Singapore, the United Arab Emirates and the US were major destinations for outward FDI, the paper said.
Meanwhile, foreign portfolio investments saw a net inflow of $3.42 billion in October against an outflow of $621 million in September. Driven by the equity segment, the net FPI was negative as of Dec. 18, the RBI paper said. The uncertainty surrounding the India-US trade deal and investors' caution around high domestic valuations kept net FPI flows to India muted in recent months, the paper added.