Mumbai: Net foreign direct investment (FDI) into India fell 98% year-on-year to $35 million in May amid higher repatriation by overseas investors and a fall in gross inflows, latest central bank data published in its monthly Bulletin showed.
Net FDI was 99% lower compared with April. Gross inflows fell 11% YoY to $7.2 billion in May, while repatriation of FDI increased nearly 24% to $5 billion. Outward FDI increased to $2.1 billion from $1.8 billion a year ago.
The Reserve Bank of India (RBI) said that Singapore, Mauritius, the UAE and the US together accounted for more than three-fourths of the total FDI inflows in May 2025. Manufacturing, financial and computer services were the top recipient sectors.
On the other hand, top sectors for outward FDI included transport, storage and communication services, manufacturing, and financial, insurance and business services. Major destinations for outward FDI included Mauritius, the US and the UAE.
In May, net portfolio investments stood at $1.6 billion. This compares with net portfolio outflows in the year and month-ago periods.
According to experts, FDI inflows are perceived to be a more stable source for India's foreign exchange reserves compared to portfolio flows.
Currently, India's FX reserves stood at $696.7 billion. At the current level, FX reserves provides cover for more than 11 months of goods imports and for 95% of the external debt outstanding at the end of March 2025.
Net FDI was 99% lower compared with April. Gross inflows fell 11% YoY to $7.2 billion in May, while repatriation of FDI increased nearly 24% to $5 billion. Outward FDI increased to $2.1 billion from $1.8 billion a year ago.
The Reserve Bank of India (RBI) said that Singapore, Mauritius, the UAE and the US together accounted for more than three-fourths of the total FDI inflows in May 2025. Manufacturing, financial and computer services were the top recipient sectors.
On the other hand, top sectors for outward FDI included transport, storage and communication services, manufacturing, and financial, insurance and business services. Major destinations for outward FDI included Mauritius, the US and the UAE.
In May, net portfolio investments stood at $1.6 billion. This compares with net portfolio outflows in the year and month-ago periods.
According to experts, FDI inflows are perceived to be a more stable source for India's foreign exchange reserves compared to portfolio flows.
Currently, India's FX reserves stood at $696.7 billion. At the current level, FX reserves provides cover for more than 11 months of goods imports and for 95% of the external debt outstanding at the end of March 2025.
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