India recorded a second consecutive month of net foreign direct investment (FDI) outflows in October, reflecting a combination of higher fund repatriation by overseas investors and increased overseas investments by Indian companies, according to data released by the Reserve Bank of India (RBI) on Monday (December 22).

The RBI figures showed that net FDI outflow in October stood at $1.55 billion, following an outflow of $1.66 billion in September, reported The Indian Express.

Gross FDI inflows during October amounted to $6.54 billion, lower than the $7 billion recorded in September and down from $7.17 billion in October 2024.

Net FDI is arrived at after accounting for repatriation of investments by foreign firms and outward investments by Indian companies. For the second consecutive month in October, these two components together crossed the $8 billion mark, leading to an overall net outflow.

The October outflow was largely driven by foreign investors pulling back capital alongside a rise in overseas investments by domestic companies. Earlier in June, outward FDI had risen sharply to $5.03 billion on a year-on-year basis, compared to $2.9 billion in the same month last year.

Outbound FDI, when measured as a financial commitment, includes equity investments, loans and guarantees.

RBI data showed that equity commitments alone jumped more than three-fold to $2.04 billion in June, compared with $670.7 million a year earlier, and nearly doubled from $987.1 million recorded in May.

Separately, foreign portfolio investors (FPIs) also continued to reduce their exposure to Indian equities.

During the first half of 2025, FPIs withdrew a total of Rs. 77,901 crore from Indian stock markets, with the largest outflows seen in the IT sector, followed by fast moving consumer goods (FMCG) and the power sector.