Foreign Investment in India Reaches 4-Year High, But Net FDI Falls

India’s appeal as an investment destination continues to strengthen, with gross foreign direct investment (FDI) reaching a four-year high of $9.3 billion in June 2025. This impressive figure marks a significant increase of approximately 22% compared to $7.6 billion in June 2024 and $7.2 billion in May 2025.

Surge in Outward Investment Impacts Net FDI

While gross FDI soared, the net FDI experienced a 50% decline due to a significant rise in outward investments and repatriations. This indicates Indian businesses are also increasingly investing capital abroad.

Understanding the Difference Between Gross and Net FDI

The distinction between gross and net FDI is crucial. Gross FDI represents the total inflow of foreign investments into India, while net FDI accounts for the difference between inward and outward investments. The decrease in net FDI, despite the rise in gross FDI, suggests a growing confidence of Indian companies in overseas markets.