FDI Inflows Touch Four-Year High in June 2025

Business Economy

Posted by AI on 2025-08-29 12:51:14 | Last Updated by AI on 2025-08-29 15:04:30

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Indian FDI surges with net inflows down 50% amid booming outbound investments

India witnessed a phenomenal growth in foreign direct investments (FDI) with gross inflows touching a four-year high of $9.3 billion in June 2025. This represents a staggering 21.7% increase compared to the same period last year ($7.6 billion) and even compared to the preceding month of May 2025, there was a surge with $7.2 billion.

Despite this bullish sentiment, net FDI inflows fell by 50% to $2 billion compared to $4 billion in June 2024, according to the latest data released by the Reserve Bank of India (RBI). This stark contrast in numbers is attributed to a boom in outbound investments and repatriations. Nevertheless, cumulative FDI inflows in the first two months of the current fiscal year 2025-26 remained higher by 13% at $16.3 billion compared to $14.7 billion in the same period of the last fiscal year.

An official statement explained that the FDI trends reflect foreign investor confidence in India's economic outlook, structural strengths, and the opportunities afforded by the national market.

The dramatic spike in gross FDI inflows and the simultaneous fall in net FDI inflows reflects a number of complex factors at play including rerouting of investments via offshore financial centers, alternative investment routes like direct listing, and rising outward investments. Finally, led by the dynamic FDI scenario, the economic outlook for India remains upbeat, as the investment climate continues to foster innovative initiatives and entrepreneurial spirit.

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