Net Foreign Direct Investment into India Falls 159% in August 2025
According to Reserve Bank of India (RBI) data, net Foreign Direct Investment (FDI) into India fell by 159% in August 2025, resulting in a net outflow of $616 million. This marks the second time in the current financial year that outflows (repatriation and disinvestment) exceeded gross inflows. Gross investments stood at $6,049 million, a 30.6% decline compared to August 2024. However, the long-term picture remains positive, with net FDI between April and August 2025 being 121% higher than the same period in the previous year, driven by increased gross inflows and contracted repatriation.
Key Points
- Net FDI turned negative in August 2025 due to high levels of repatriation and disinvestment by foreign firms.
- Gross inflows in August 2025 were 45.5% lower than in July 2025.
- Despite the monthly dip, the cumulative net FDI for April-August 2025 reached $10,128 million.
- Core sector growth also slowed to a three-month low of 3% in September.
Exam Facts
- Net FDI in August 2025 was -$616 million.
- Cumulative net FDI (April-August 2025) was $10,128 million.
- Core sector growth in September was 3%.
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