Net FDI turned negative again in May 2026 with outflows exceeding inflows by $74 million
Net foreign direct investment (FDI) in India turned negative in May 2026, with outflows exceeding inflows by $74 million. This decline marks a reversal of a three-month positive trend, driven by a significant drop in gross inflows.
Why it matters
Fluctuations in FDI are critical indicators of investor confidence and the overall health of the national economy.
Net foreign direct investment inflows turned negative once again in May 2026, with outflows exceeding inflows by $74 million, according to the latest Reserve Bank of India data. This snapped a three-month streak of positive net inflows and was driven by a sharp drop in direct investment entering India.
That is, even though outflows fell, inflows fell by a larger amount.
According to the data released as part of the RBI’s monthly bulletin for June 2026, the total amount of direct investment entering the country, or gross inflows, stood at about $6.1 billion in May 2026. This was 60% lower than in April, and nearly 23% lower than in May last year.
The RBI’s commentary did not speak about May 2026 on a standalone basis, but instead focused on the April-May 2026 period.
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