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Informist, Wednesday, May 21, 2025

--RBI: Mar gross FDI inflows $5.94 bln vs $5.47 bln Feb, $6.10 bln yr ago

NEW DELHI – Gross foreign direct investment into India in March was $5.94 billion, up from $5.47 billion the previous month, according to the Reserve Bank of India's bulletin released Wednesday. In March last year, gross FDI into India was $6.10 billion.

On a net basis, FDI registered an outflow of $1.09 billion in March, against an outflow of $1.25 billion in February, according to RBI data. The net outflows narrowed from $1.37 billion in March last year. Total FDI takes into account equity capital, reinvested earnings, and other capital. 

While the gross FDI inflow in 2024-25 (Apr-Mar) rose 13.7% on year to $81.04 billion, the net inflow during the same period fell sharply to a minuscule $353 million from $10.13 billion the previous year, reflecting a rise in repatriation and outward FDI from India.

"This is a sign of a mature market where foreign investors can enter and exit smoothly, which reflects positively on the Indian economy," RBI staff wrote in the State of Economy article in the bulletin. Net outward FDI rose over 75% on year to $29.2 billion, with rise attributed to investments in Singapore, the US, UAE, Mauritius and the Netherlands. Financial banking and insurance services was the top contributing sector in outward FDI.

Manufacturing, financial services, electricity and other energy, and communication services sectors accounted for more than 60% of the FDI inflows in FY25, according to the article. Out of these sectors, manufacturing received the highest share of equity inflows. Singapore, Mauritius, the US, the UAE, and the Netherlands were the major sources of FDI flows into India, accounting for more than 75% of the flows, the paper said.

Foreign portfolio investment saw outflows of $2.4 billion in April after a revival of inflows in March. The debt segment saw its worth month since March 2020 and accounted for $3.7 billion of outflows, even as Indian equities performed well among emerging markets following the April market trough. "While equity FPI turned positive in the latter half of the month – supported by the 90-day pause in the US tariff implementation and growing optimism around a potential US-India trade agreement – overall FPI flows remained negative during April 2025," the article said.  End

US$1 = INR 85.64

Reported by Aaryan Khanna

Edited by Deepshikha Bhardwaj

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