Overview
- RBI data released Thursday showed net FDI of $4.62 billion in February, the strongest monthly reading since May 2022.
- February’s turnaround ended a six‑month stretch of negative net FDI as gross inflows rose to $8.98 billion and repatriations fell to $1.74 billion.
- Outward investment by Indian firms was $2.63 billion in February, down year on year, which also helped lift the month’s net figure.
- Morgan Stanley reported gross FDI at $90.8 billion on a 12‑month basis in January, yet net FDI was near $0.5 billion because profit transfers stayed high and outbound FDI climbed.
- Services drew about 46% of inflows and a balanced mix of greenfield IT and banking projects and brownfield stakes and deals supported the pipeline, but weak net FDI leaves India more reliant on volatile portfolio flows that have recently pressured the rupee.