TheInterviewTimes.com | February 22, 2026 | 10:26 AM IST | Mumbai
India net FDI negative for the fourth straight month in December 2025 with record $7.45 billion repatriations outpacing $8.58 billion gross inflows, RBI data shows. Rupee weakens amid outflows, but US trade deal offers relief. Latest updates February 2026.
India’s net foreign direct investment stayed negative for the fourth consecutive month in December 2025. Reserve Bank of India data released in its February 2026 Bulletin revealed net FDI at minus $1.61 billion, driven by record repatriations of $7.45 billion by foreign investors. Gross inflows hit $8.58 billion, a five-month high, yet outflows overwhelmed gains.
Key December Data Breakdown
Gross FDI inflows climbed to $8.58 billion in December 2025 from $7.32 billion the previous year. Indian firms boosted overseas investments by 30.5 percent year-on-year to $2.74 billion. Singapore, the Netherlands, and Mauritius supplied over 80 percent of inflows, targeting transport, manufacturing, computer services, and energy sectors.
Repatriations by foreign investors reached a record $7.45 billion, up sharply from $5.40 billion in December 2024. This marked the highest monthly figure in RBI records, mainly from equity sell-downs by private equity and venture capital firms. Net FDI worsened from minus $189 million a year earlier and minus $475 million in November 2025.
Fiscal Year Trends So Far
For April to December 2025, net FDI reached nearly $4 billion, up from $0.6 billion the prior year. Gross inflows grew 16.1 percent to around $73 billion, with April-November alone at $64.7 billion. Repatriations totaled $44.45 billion over nine months, a 10 percent rise, highlighting maturing investor exits amid strong IPO activity.
Greenfield project announcements stayed robust at $56 billion for April-November 2025, close to prior year’s $63 billion. RBI Governor Sanjay Malhotra noted gross FDI grew at a robust pace, signaling long-term confidence despite net moderation.
Rupee Pressure and External Factors
Sustained outflows contributed to the rupee breaching 91 per dollar for the first time in 2026, hitting 91.05 recently amid foreign portfolio outflows of $5.8 billion since April. Analysts link the trend to private equity realizations and global trade jitters. India’s external sector holds firm with $723.8 billion forex reserves as of January 30, covering over 11 months of imports.
US Trade Deal Provides Relief
A February 2026 interim US-India trade agreement cut reciprocal tariffs on Indian goods from 25 percent to 18 percent, scrapping a punitive 25 percent levy tied to Russian oil purchases. This boosts exporters in textiles, chemicals, and machinery. Foreign investors bought $2 billion in Indian equities in early February, easing rupee pressure.
Outlook and RBI Perspective
RBI stresses resilience from services exports and remittances, with greenfield commitments intact. Net FDI moderation reflects a maturing market with smooth exits, per Governor Malhotra. Watch for February data and trade deal impacts amid ongoing repatriation trends.
