India remains a strong investment destination, and the increase in repatriation of funds reflects the maturity of its financial markets, where foreign investors can enter and exit with ease, said RBI Governor Sanjay Malhotra on Friday.
Gross foreign direct investment (FDI) inflows rose by nearly 14% to USD 81 billion in 2024-25, compared to USD 71.3 billion in the previous year. However, net FDI inflows declined sharply to USD 0.4 billion from USD 10.1 billion in 2023-24, largely due to higher repatriation.
Additionally, foreign portfolio investment (FPI) into India dropped significantly to USD 1.7 billion in 2024-25, as global investors locked in profits in the equity markets.