Despite the war in West Asia, foreign direct investment (FDI) inflows rose sharply in both gross and net terms in April this year, bucking the trend of heightened outflows by foreign portfolio investors.
Gross FDI inflows rose to $15.3 billion in April this year compared with $9.3 billion in the same month last year. Similarly, net FDI inflows rose to $6.6 billion from around $1.6 billion during the same period, the Reserve Bank of India’s (RBI) monthly bulletin for June shows.
In fact, net FDI remained negative for five consecutive months from August to December last year due to a rise in repatriation and outward FDI.
“During April 2026, net FDI remained above its corresponding level during the previous year, supported by higher gross inflows and lower repatriation,” the bulletin says.
Investment by Indian companies abroad stood at $4.8 billion in April this year, compared with $3.4 billion in the same month last year. In FY26, they invested $33.8 billion compared with $28.2 billion in the previous year. Foreign portfolio investment registered net outflows of $7.2 billion in April this year, driven largely by withdrawals from the equity segment.
In FY26, gross FDI inflows rose 17.3% to $94.8 billion in FY26 from $80.6 billion a year ago. Net FDI inflows rose to $6.9 billion in FY26 from a low of around $1 billion the previous year. To be sure, net FDI touched an all-time high of $44 billion in FY21. It fell to $38.6 billion in FY22, then to $28 billion in FY23 and $10.9 billion in FY24.
TOPICSECONOMYFDIThis article was first uploaded on June twenty-two, twenty twenty-six, at six minutes past nine in the night. © The Indian Express (P) Ltd