Why India's FDI turning negative is reason for cheer
- Swaminathan Anklesaria Aiyar
- TNNUpdated: Feb 25, 2026, 15:45 IST IST
The world is impressed by India’s strong economic performance and, so, FDI has been booming. But readers may be surprised to hear that net FDI (NFDI) has actually been negative in the last 4 mths (–$2.40 bn in September 2025; –$0.167 bn in October; –$0.446 bn in November; –$1.61 bn in December).
Gross inflows have been substantial: $6.60 bn in September 2025; $6.54 bn in October; $6.41 bn in November; $5.84 bn in December. But outflows have exceeded inflows. This does not denote a crisis. Rather, it’s something to cheer —the outflows reflect success.
Gross inflows have been substantial: $6.60 bn in September 2025; $6.54 bn in October; $6.41 bn in November; $5.84 bn in December. But outflows have exceeded inflows. This does not denote a crisis. Rather, it’s something to cheer —the outflows reflect success.
