India recorded a sharp jump in foreign direct investment at the start of FY26, with gross FDI inflows rising nearly 23% year-on-year to $8.8 billion in April 2025, according to the Finance Ministry’s Monthly Economic Review for May 2025.The gross inflows were also higher than the $5.9 billion recorded in March 2025, signaling continued investor confidence despite persistent global headwinds.
Net FDI – which excludes repatriations and outward investments – more than doubled in April, supported by a sharp decline in repatriations, the review showed. Repatriated FDI dropped 59% year-on-year to $1.7 billion, while net outward FDI stood at $3.2 billion, up nearly 169% from April 2024 but lower than the previous month.
Manufacturing and business services accounted for nearly half of the gross inflows during the month. Key outward FDI destinations included Singapore, Mauritius, and Germany, with top sectors such as electricity, gas, water supply, and financial services.India ranked 16th globally in FDI inflows and attracted $114 billion in greenfield investment into digital economy sectors between 2020 and 2024 – the highest among Global South countries, according to the data previously released by the Reserve Bank of India.
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