Net FDI fell 159% in August 2025 as extra money left the nation than was invested in it

Net Foreign Direct Investment (FDI) into India fell 159% in August 2025, with extra money leaving the nation than coming into it that month, in line with official knowledge. This is the second time this monetary yr that outflows have exceeded inflows.

However, the image is reversed when checked out over an extended time interval, with internet FDI in April-August 2025 greater than 121% greater than in the identical five-month interval of the earlier yr. 

An evaluation by The Hindu of knowledge launched by the Reserve Bank of India reveals that the repatriation and disinvestment by international firms working in India and the investments carried out overseas by Indian firms — which taken collectively is the entire cash leaving the nation — was greater than the gross quantity that was invested into India in August 2025.

Investment breakup

Gross investments into India stood at $6,049 million in August 2025, 30.6% decrease than their stage in August final yr and 45.5% decrease than in July this yr. This was the bottom stage of gross inflows on this monetary yr to date.

The quantity repatriated and disinvested by international firms working in India stood at $4,928 million in August 2025, down 5.4% over the quantity in August 2024 however almost 30% greater than the quantity in July 2025.

Foreign investments by Indian firms contracted 29.7% in August 2025 to $1,736 million, the bottom on this monetary yr. 

Taken collectively, this meant that internet FDI into India — the distinction between the gross quantity coming in and the entire quantity going out — stood at -$616 million in August 2025, 159% decrease than in August final yr. That is, extra money left the nation in August 2025 than coming into it that month. 

This had occurred in May 2025 as nicely, albeit at a smaller scale, as internet FDI had stood at -$5 million throughout that month. 

Rosier long-term

However, the FDI image appears to be like higher when checked out over an extended timeframe.

Net FDI within the April-August 2025 interval was $10,128 million, greater than 121% greater than in the identical interval of final yr. This was pushed by a 18.2% improve in gross inflows ($43,760 million) coming into the nation and a 6.1% contraction in repatriation and disinvestment ($21,205 million) leaving India throughout this era.

Foreign funding by Indian firms stood at $12,427 million within the April-August 2025 interval, up almost 26% over the identical interval of the earlier yr.