Fdi in india: This news is going to be relaxed in terms of Indian economy, when for the first time in four years, foreign direct investment in the country has reached a record level. A few days ago, American agency S&P Global upgraded India’s rating. Along with this, the government has taken several important steps to boost the economy. Meanwhile, according to data released by RBI on Wednesday, the average FDI in the country has increased to $ 11.11 billion in the country for the first time in four years.

FDI record level

This is the highest ever since the average $ 12.32 billion FDI in July 2021. While the FDI was $ 9.57 billion in June a month ago, the FDI figure in July 2024 was $ 5.54 billion, which was almost half of this year’s July.

FDI comes from Singapore the most, followed by the Netherlands, Mauritius, US and UAE. About three fourths of the total FDI from these countries comes to India. Manufacturing and services sectors, including communications, computer and business services, are the most FDIs coming.

Importance of FDI

Significantly, FDI is an important indicator towards telling the health of the economy of any country and the restoration of foreign investors. Earlier, S&P had upgraded India’s rating from BBB to BBB on 14 August. A day later, PM Modi announced several economic reforms on August 15 to increase the pace of domestic economy. One of these announcements was the announcement of GST rates, which has been made effective on Monday earlier this week.

Even though there is a period of uncertainties in global trade, policy and financial markets during FY 2025-26, FDI figures are continuously increasing. Net FDI had increased to $ 10.75 billion during the first four months of the current financial year, which is three times more than the same period a year ago. At the same time, the average FDI has increased by 33 percent to 37.71 billion dollars. On the other hand, Indian companies’ direct investment abroad has increased by 44 percent to $ 10.67 billion.

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Fall in FDI Flow: There has been a tremendous decrease in the flow of foreign direct investment in India and it has fallen by 96.5 percent, which is so far low. According to the RBI, the flow of pure FDI in the country during the last financial year 2025 was $ 353 million, which was $ 10 billion during 2024 i.e. 2024. The RBI said in the bulletin issued that the reason for this is the increase in FDI and repatriation going out. You can also understand this that the money that came in India went out more than that.

Why FII Flow reduction

One reason for the decrease in pure foreign direct investment is to return more money than India. During the financial year 2025, $ 49 billion left India, while the figure was $ 41 billion during the financial year 24. RBI said that the net flow of stable FDI was 86 percent less than the volatile portfolio flow. Portfolio flows during the whole year stood at $ 2.67 billion.

The reason for a major decline in FDI flow is also believed to be the exit of alpha wave global and other investors from IPOs like Swigy and Vishal Mega March during this financial year.

Opposition raising questions

The Congress said on Sunday that FDI in India) The decline in flow shows great uncertainty related to investment in the country. A large number of companies are preferring to invest abroad. All India Congress Committee (AICC) general secretary Jairam Ramesh said in a post on the social media forum ‘X’ that the recently released Reserve Bank of India (RBI) data shows that in 2024-25, the net FDI flow in India unexpectedly reduced by 96 percent to just 0.4 billion US $.

Jairam Ramesh said that whatever official clarification is being given regarding this huge decline, the truth is that it reflects tremendous uncertainty about investment in India -which is discouraging not only foreign investors, but also Indian companies and are now giving priority to investing abroad instead of investing in the country.

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