Net FDI negative for fourth month in a row in November 2025, outflows exceed inflows by $446 million

Analysis of the latest data from the Reserve Bank of India (RBI) shows that India’s net foreign direct investment (FDI) remained negative for the fourth consecutive month in November 2025, with outflows exceeding inflows that month by $446 million.

Data published as part of the RBI’s monthly bulletin shows that the main reason why FDI outflows exceeded inflows in November was due to relatively high returns and disinvestment by foreign companies operating in India.

Direct investments are generally made in assets and are generally viewed as generating growth, as opposed to portfolio investments in equity and debt for expected returns.

Net foreign portfolio investment (FPI) has also been negative so far in the financial year 2025-26, with uncertainty over the India-US trade deal and weakening of the rupee impacting investor confidence, the RBI said.

Fixed gross receipts

Gross direct inflows, which is the total amount of direct investments coming into the country, amounted to $6.4 billion in November 2025, 22.5% higher than the amount received in November last year. However, this figure was slightly lower than the $6.5 billion received in October and the $7 billion received in September.

“Gross domestic FDI remained stable in November, with Japan, Singapore and the US accounting for more than 75 per cent of total FDI inflows,” the RBI said in its report. “The largest recipients of FDI inflows (around 75%) were the financial services sector, followed by manufacturing and retail and wholesale trade.”

Higher returns

However, net foreign direct investment, which is the balance between outflows and inflows, stood at -$446 million; This means that total outflows exceed total inflows by this amount. Within this, repatriation and disinvestment reached $5.3 billion in November 2025, a five-month high, although 1.2% lower than in November 2024.

Outward foreign direct investment, investments made by Indian companies abroad, stood at $1.5 billion in November 2025; that was less than half the $3.2 billion in October.

“Outward FDI slowed down in November, with Singapore, Mauritius, the US and the UK accounting for more than half of the total outward FDI,” said the RBI. “Sector-specific analysis shows that more than 70% of outward FDI is in manufacturing, finance, insurance and business services.”

Outflow from portfolio investments continues

Net foreign portfolio investments are negative for the financial year 2025-26 till January 16, 2026, the RBI report said.

“Uncertainty surrounding the India-US trade deal and the weakening of the rupee have resulted in net FPI flows into India remaining muted in recent months,” the RBI said. “Following brief net inflows in October and November, FPIs recorded net outflows of $4.2 billion in December. Debt flows also turned negative in December after a period of five months.”