Mumbai: The Reserve Bank of India (RBI) has reported a significant increase in gross inward foreign direct investment (FDI) during the April-July period of the current fiscal year.
According to the latest data, gross inward FDI surged by 23.6% year-on-year, reaching $27.7 billion, up from $22.4 billion in the same period last year.
This growth in FDI is attributed to increased investments from major source countries, including Singapore, Mauritius, the Netherlands, the United States, Belgium, and Japan1. The RBI’s bulletin highlighted that the manufacturing, financial services, communication services, computer services, electricity, and other energy sectors accounted for more than three-fourths of the gross FDI inflows.
Net FDI also saw a notable rise, increasing to $5.5 billion during the April-July period, compared to $3.8 billion in the corresponding period of the previous year1. Additionally, non-resident deposits recorded net inflows of $5.8 billion, a significant jump from $3 billion a year ago.
The RBI’s report underscores the positive impact of these investments on India’s economic landscape, reflecting growing investor confidence in the country’s economic prospects. The central bank’s data also indicated a rise in repatriation and divestment by those who made direct investments in India, amounting to $15.9 billion during the four months of FY25, up from $14.7 billion in the previous year.
