Published Jul 30, 2026 | 4:18 PM ⚊ Updated Jul 30, 2026 | 4:19 PM
Net FDI stood at $27.99 billion in 2022-23, declined to $10.13 billion in 2023-24, fell further to $0.96 billion in 2024-25.
Synopsis: Net foreign direct investment (FDI) into India fell by 97 percent between 2022-23 and 2024-25, dropping from $27.99 billion to $0.96 billion, data presented by the Centre in Parliament show. The Finance Ministry attributed the decline to increased overseas direct investment by Indian firms and stronger investor returns. CPI(M) MP John Brittas accused the Centre of highlighting gross FDI inflows to mask the collapse in net FDI.
Net foreign direct investment (FDI) into India declined by 97 percent between 2022-23 and 2024-25, falling from $27.99 billion to $0.96 billion, figures tabled in Parliament by the Union Ministry of Finance show.
At the same time, FDI outflows through repatriation and disinvestment rose steadily during the period, reaching $54.04 billion in 2025-26, while net FDI recovered to $6.95 billion in the same year.
The figures were furnished by Minister of State for Finance Pankaj Chaudhary in response to an unstarred question raised by CPI(M) Rajya Sabha Member John Brittas.
Citing the figures, Brittas accused the Union government of emphasising gross FDI inflows to “hide the crisis”.
“Foreign investors have taken out nearly $180 bn through repatriation and disinvestment in four years. If India is such an attractive investment destination, why is net FDI collapsing?” he wrote in a post on X.
The Government celebrates Gross FDI. The truth lies in Net FDI.
Net FDI has crashed by 97% – from ‘USD 27.99 bn in 2022-23’ to just ‘USD 0.96 bn in 2024-25’!!.
Meanwhile, foreign investors have taken out nearly USD 180 bn through repatriation and disinvestment in four years.… pic.twitter.com/E7oaizg1k4
— John Brittas (@JohnBrittas) July 30, 2026
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Net FDI stood at $27.99 billion in 2022-23, declined to $10.13 billion in 2023-24, fell further to $0.96 billion in 2024-25, and recovered to $6.95 billion in 2025-26, according to figures furnished by the Finance Ministry.
FDI outflows through repatriation and disinvestment increased from $29.35 billion in 2022-23 to $44.47 billion in 2023-24, $51.49 billion in 2024-25 and $54.04 billion in 2025-26.
The ministry said India recorded gross FDI inflows of $94.84 billion in 2025-26, up from $80.61 billion in the previous financial year. It maintained that the liberalised ODI rules notified in 2022 had enabled Indian entities to expand their business presence abroad and compete globally, strengthening the Indian economy over the long term.
“The recent trend in net FDI inflows is associated with increased repatriation/disinvestment by foreign investors and rising Overseas Direct Investment (ODI) outflows. The ODI outflow on account of liberalized ODI rules notified in 2022 is helping Indian entities to enhance their business footprints abroad enabling them to compete in the global market, adding to the strength of Indian economy in long run. The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination,” the reply reads.
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Southern States continued to account for a substantial share of foreign investment. Karnataka remained among the country’s top investment destinations alongside Maharashtra in 2025-26, according to state-wise and sector-wise FDI equity inflow data provided by the Finance Ministry.
Karnataka and Tamil Nadu ranked second and fifth, respectively, in FDI equity inflows during 2025-26, attracting $12.94 billion and $4.72 billion. Maharashtra topped the list with $18.42 billion. Delhi was third at $6.18 billion, followed by Gujarat at $5.71 billion.
Among the other southern States, Telangana received $2.25 billion in FDI equity inflows during 2025-26, Andhra Pradesh $609 million and Kerala $377 million. Kerala’s inflows were lower than the $397 million recorded in 2024-25 but remained above the $197 million received in 2023-24 and $165 million in 2022-23.
The data showed that Kerala attracted more FDI equity than several larger States in 2025-26. Its inflows exceeded those of Punjab ($367 million), West Bengal ($229 million), Madhya Pradesh ($80 million) and Jharkhand ($4 million), while Uttar Pradesh received $950 million and Rajasthan $1.01 billion.
Over the four-year period covered by the reply, Karnataka and Tamil Nadu consistently figured among the country’s leading destinations for FDI equity inflows, while Telangana recorded inflows exceeding $2 billion in each of the last three financial years.
Kerala’s FDI equity inflows, though modest in absolute terms, more than doubled between 2022-23 and 2024-25 before easing marginally in 2025-26.
(Edited by Dese Gowda)
