India’s net FDI falls 98.2% in May 2025 to only $40 million, down from $2.2 billion in May 2024.
The Reserve Bank of India data shows that more money left India than came in, because of higher repatriation, divestment, and outward investments.
Net FDI is the gap between what comes in and what goes out. In May 2025, that gap almost closed.
For a large economy that claims strong investor interest, this is a sharp fall.
India’s net FDI falls 98.2%: RBI numbers raise confidence questions
The fall means foreign investors pulled back profits and capital, and Indian companies also sent more money abroad.
This pushed the net figure down to $40 million. Last year, the same month brought $2.2 billion. The change is big and hard to ignore.
Such a drop raises questions about policy stability, legal certainty, and market confidence in India.
It also shows how fast sentiment can turn when outflows rise.
For Pakistan and the wider region, the number matters.
If India’s investment story weakens, capital may look at other markets that promise clearer rules, stable taxes, and realistic returns.
The message is simple. The RBI’s own numbers say it: India’s net FDI falls 98.2%. Forty million dollars came in on a net basis this May. That is almost nothing compared to last year’s $2.2 billion.
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