Bulletin RBI: The Reserve Bank of India (RBI) has said in its November Bulletin that fiscal, monetary and regulatory measures are creating a favorable environment for increased private investment in India, which will accelerate economic growth in the coming years. In the article titled ‘State of the Economy’, it has been told that despite global uncertainties, the Indian economy is continuously showing signs of strength.

Strength in Indian economy

High-frequency indicators for the month of October—such as PMI, GST collections, electricity consumption and e-way bills—point to strength in both the manufacturing and services sectors, with festive demand and GST reforms playing a key role. According to the report, inflation is at historically low levels and remains well below target, while financial conditions are also favorable and resource flows are stable.

Despite uncertainties in global trade policies and external challenges, India’s economy is becoming stronger with time, thanks to strong services exports, rising remittances, cheap crude oil and increasing share of renewable energy.

Private investment will get a boost

The current account deficit also remained limited in proportion to GDP in the first quarter of the financial year 2025–26. The bulletin said that the improved macroeconomic framework has enhanced the efficiency of financial institutions and helped the RBI to further streamline financial intermediation and credit flows.

The article also mentions that policy steps taken this year will bring long-term economic strength through increased private investment and productivity. However, concerns remain about the sustainability of the euphoria in global stock markets and its impact on financial stability. RBI has clarified that the views published in the bulletin are personal to the authors and should not be linked to the official views of the bank.

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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