The Crossbill News Desk
Rising remittances by foreign investors and stepped-up overseas investments by Indian companies pushed India’s foreign investment balance into the red again in December, even as overall inflows for the financial year remained higher than last year.
Net foreign direct investment (FDI) stayed negative for the fourth straight month in December 2025 as a rise in repatriation outpaced fresh inflows, according to data published in the February 2026 Bulletin of the Reserve Bank of India (RBI).
Net FDI stood at negative $1.61 billion in December 2025 compared with negative $189 million in December 2024, reflecting higher outward remittances by foreign investors and increased overseas investment by Indian firms.
While December reflected pressure on net flows, cumulative data for April to November 2025 showed stronger gross inflows. The RBI said gross FDI inflows to India grew by 16.1% year on year to $64.7 billion during April to November 2025, up from $55.8 billion in the same period a year ago. Net FDI during this period rose to $5.6 billion from $0.8 billion a year earlier, as repatriations declined even though outward FDI increased.
The month of December, however, saw a sharp uptick in money being sent back by overseas investors. Repatriations rose sharply year on year, recording at $7.45 billion compared with $5.40 billion in December 2024, leading to a negative net balance despite continued gross inflows.
Even so, investment intentions in new projects remained substantial. The bulletin noted that India continued to attract significant greenfield investment announcements. During April to November 2025, greenfield project announcements amounted to $56 billion, only marginally lower than $63 billion in the corresponding period of the previous year.
In terms of source countries, Singapore, the Netherlands and Mauritius accounted for the bulk of gross inward FDI in December, together contributing more than 80% of total inflows, the bulletin said. The main recipient sectors were transport, manufacturing, computer services, and electricity and other energy generation, distribution and transmission.
Outbound investment by Indian corporates also stayed strong during the period. Outward FDI also remained elevated. Indian firms stepped up overseas investments, with key destinations being Singapore, the US, the UAE, the UK and the Netherlands. The principal sectors for outward investment were financial, insurance and business services, and wholesale or retail trade, restaurants and hotels.
On the capital markets front, foreign portfolio investment recorded net outflows of $5.8 billion during April to early February of the current financial year.
Despite the volatility in capital flows, the RBI said India’s external sector remained resilient overall, supported by robust services exports and healthy remittance inflows. As on 30 January 2026, foreign exchange reserves stood at $723.8 billion, providing merchandise import cover of more than eleven months.
Net foreign direct investment (FDI) stayed negative for the fourth straight month in December 2025 as a rise in repatriation outpaced fresh inflows, according to data published in the February 2026 Bulletin of the Reserve Bank of India (RBI).
Net FDI stood at negative $1.61 billion in December 2025 compared with negative $189 million in December 2024, reflecting higher outward remittances by foreign investors and increased overseas investment by Indian firms.
While December reflected pressure on net flows, cumulative data for April to November 2025 showed stronger gross inflows. The RBI said gross FDI inflows to India grew by 16.1% year on year to $64.7 billion during April to November 2025, up from $55.8 billion in the same period a year ago. Net FDI during this period rose to $5.6 billion from $0.8 billion a year earlier, as repatriations declined even though outward FDI increased.
The month of December, however, saw a sharp uptick in money being sent back by overseas investors. Repatriations rose sharply year on year, recording at $7.45 billion compared with $5.40 billion in December 2024, leading to a negative net balance despite continued gross inflows.
Even so, investment intentions in new projects remained substantial. The bulletin noted that India continued to attract significant greenfield investment announcements. During April to November 2025, greenfield project announcements amounted to $56 billion, only marginally lower than $63 billion in the corresponding period of the previous year.
In terms of source countries, Singapore, the Netherlands and Mauritius accounted for the bulk of gross inward FDI in December, together contributing more than 80% of total inflows, the bulletin said. The main recipient sectors were transport, manufacturing, computer services, and electricity and other energy generation, distribution and transmission.
Outbound investment by Indian corporates also stayed strong during the period. Outward FDI also remained elevated. Indian firms stepped up overseas investments, with key destinations being Singapore, the US, the UAE, the UK and the Netherlands. The principal sectors for outward investment were financial, insurance and business services, and wholesale or retail trade, restaurants and hotels.
On the capital markets front, foreign portfolio investment recorded net outflows of $5.8 billion during April to early February of the current financial year.
Despite the volatility in capital flows, the RBI said India’s external sector remained resilient overall, supported by robust services exports and healthy remittance inflows. As on 30 January 2026, foreign exchange reserves stood at $723.8 billion, providing merchandise import cover of more than eleven months.
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