India experienced a significant boost in net foreign direct investment (FDI) in April 2025, with inflows reaching US$3,900 million, more than double the figure from April 2024, which stood at US$1,900 million, according to new data released by the Reserve Bank of India (RBI). The sharp uptick was largely due to a considerable slowdown in capital repatriation.
Gross FDI inflows surged to US$8,800 million in April, rising from US$5,900 million in March 2025 and US$7,200 million a year earlier. Meanwhile, capital repatriation—or foreign investors pulling out funds—dropped to US$1,700 million, down from US$4,100 million in April 2024.
Despite the monthly decline in repatriation, cumulative divestments during FY25 (so far) rose to US$51,400 million, compared to US$44,400 million in FY24. The RBI attributed this rise to a maturing Indian investment ecosystem, which offers both entry and exit flexibility to global investors.
On the other hand, outward FDI by Indian firms also saw a major spike. In April 2025, Indian companies invested US$3,200 million abroad, a sharp increase from US$1,200 million in April 2024. The main sectors driving this outflow included electricity, gas, water supply, and financial and business services. The favored international investment destinations were Singapore, Mauritius, and Germany.
According to the RBI’s latest State of the Economy bulletin, manufacturing and business services together contributed nearly half of all gross FDI inflows. The central bank noted that the consistent strength in inbound investments underscores India’s position as one of the most attractive destinations for global capital.
These trends indicate growing international trust in India’s economy, as the country continues to draw long-term investments across key sectors while expanding its own footprint in overseas markets.
