Net FDI improves to $3.9 bn in April 2025 as repatriation slows: RBI | Current Affairs | Vision IAS

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Net FDI improves to $3.9 bn in April 2025 as repatriation slows: RBI

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Net Foreign Direct Investment (FDI) in India - April 2025

The net foreign direct investment in India, which is the difference between gross inflows and outflows, improved significantly to $3.9 billion in April 2025 from $1.9 billion in April of the previous year. This improvement was primarily due to a moderation in the repatriation of capital.

Gross Inward FDI

  • The gross inward FDI was $8.8 billion in April 2025.
  • This was higher compared to $5.9 billion in March 2025 and $7.2 billion in April 2024.
  • Manufacturing and business services sectors accounted for nearly half of these inflows.
  • The high gross FDI indicates that India continues to be an attractive investment destination.

Capital Repatriation/Divestment

  • The scale of capital repatriation/divestment moderated to $1.7 billion in April 2025 from $4.1 billion last year.
  • Total repatriation/divestment rose to $51.4 billion in FY25 from $44.4 billion in FY24.
  • The increase in repatriation is considered a sign of a mature market where foreign investors can enter and exit smoothly.

Outward FDI from India

  • Outward FDI surged to $3.2 billion in April 2025 from $1.2 billion in April 2024.
  • Key sectors for outward FDI included: 
    1. Electricity, gas, and water
    2. Financial, insurance, and business services
  • Major destinations were Singapore, Mauritius, and Germany.

Data Highlights

  • Gross inward FDI reached $8.8 billion in April, which is $5.9 billion higher than in March.
  • Outward FDI from India increased sharply to $3.2 billion in April.
  • The scale of capital repatriation/divestment was moderated to $1.7 billion in April.
  • Repatriation/divestment rose to $51.4 billion in FY25.
  • Tags :
  • Foreign Direct Investment
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