Net FDI inflows went up 44% during Apr-Aug
India's net Foreign Direct Investment (FDI) inflows rose by 44% to $13.8 billion between April and August 2026, despite a sell-off by foreign portfolio investors. The Reserve Bank of India noted that this growth was supported by strong gross inflows and moderated outward investments.
Why it matters
The rise in FDI provides a crucial economic buffer for India, signaling continued investor confidence in the domestic market despite global volatility.
NEW DELHI: Amid the exodus of foreign portfolio investors (FPIs) from Indian equity markets, net foreign direct investment (FDI) inflows have provided a silver lining, rising 44% year-on-year to $13.8 billion during April-August 2026, up from $9.6 billion in the first five months of last fiscal.According to the Reserve Bank of India’s (RBI) October bulletin released on Friday, net FDI stood at $3.3 billion in August, supported by sustained gross FDI inflows and a moderation in the pace of outward FDI.The RBI data showed that gross FDI inflows rose 20% y-o-y to $11.1 billion during the April-August period, while net outward FDI increased 26.5% to $17.7 billion, compared with a 41.9% rise a year ago.
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