Overview
- India’s gross foreign direct investment reached a record $94.53 billion in FY2025–26 while net FDI was about $7.7 billion after deducting outflows.
- Foreign investors repatriated roughly $53.6 billion and Indian firms invested about $33.3 billion overseas in FY2025–26, which sharply reduced the net retained capital.
- The Reserve Bank of India intervened heavily in the currency market in the fiscal year, reporting gross forex sales near $195.4 billion and net sales of about $53.1 billion to support the rupee.
- Portfolio investors withdrew large sums after the West Asia war began, with reported FPI outflows of roughly $13.6 billion in March, $7.56 billion in April, and $2.62 billion in May, increasing near‑term currency pressure.
- Net FDI remains far below the FY21 peak of about $44 billion, a trend that highlights deeper shifts in how capital moves into and out of India and could raise borrowing costs and exchange‑rate volatility for businesses and households.