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Record Repatriations Drive Fourth Straight Net FDI Outflow for India in December

Early February equity buying tied to recent US and EU trade progress has eased pressure on the rupee.

Overview

  • RBI data show net FDI was negative by $1.61 billion in December 2025, the fourth consecutive month of outflows.
  • Foreign investors repatriated a record $7.45 billion in December, with year-to-date exits largely from equity reductions.
  • Outward FDI by Indian firms rose to about $2.75 billion in December and reached $24.88 billion in April–December, up 35% year-on-year.
  • The RBI sold a net $10.02 billion in foreign exchange in December as the rupee fell to fresh lows near 91–92 per dollar before stabilizing.
  • Gross FDI inflows remained strong at $8.58 billion in December and $73.3 billion in April–December, while early February saw roughly $2 billion of FPI equity purchases after the interim IndiaUS tariff deal.