The data, released as part of the RBI’s monthly bulletin, shows that this trend holds true on a quarterly basis as well.
| Photo Credit: T.C.A. Sharad Raghavan
While the gross Foreign Direct Investment (FDI) into India grew to a four-year high in June 2025, the net amount contracted more than 50% owing to faster growth in repatriations by foreign companies in India, and outward investments by Indian companies, according to data released by the Reserve Bank of India (RBI).
The data, released as part of the RBI’s monthly bulletin, shows that this trend holds true on a quarterly basis as well. Gross investments in the June 2025 quarter grew 10.5%, but were outpaced by the growth in outward FDI by Indian companies, leading to a contraction in net FDI.
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Gross inflows into India, which measures the total amount entering the country, stood at $9.3 billion in June 2025, up nearly 22% as compared to $7.6 billion in June 2024. and $7.2 billion in May 2025.
“Gross inward FDI reached a four-year high in June,” the RBI noted in its report. “Even so, net FDI inflows remained muted due to an increase in both repatriation of FDI and outward FDI.”
Repatriation or disinvestment, which is the amount of money foreign companies operating in India are sending outside, increased by 40.7% in June 2025 to $5.7 billion. This was even higher than the $5 billion seen in May 2025.
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Outward FDI by Indian companies grew even faster, by more than 88%, to $2.5 billion in June 2025. As a result, net FDI, which is gross FDI minus repatriation and outward FDI, stood at $1.1 billion in June 2025, about 52% lower than its level in June last year.
On a quarterly basis, gross FDI into India increased by 10.5% in the June 2025 quarter to $25 billion, but net FDI contracted by 21% to $4.9 billion. This was because outward FDI grew by more than 79% to $7.9 billion and repatriation grew by 1.8% to $12.4 billion during this period.
Published – August 29, 2025 03:31 pm IST