Why India's FDI turning negative is reason for cheer

Feb 25, 2026 | 15:45 IST

Outflow of funds has exceeded inflows for the past four moths, but there is no cause for worry. It is a sign of booming capitalism

The world is impressed by India’s strong economic performance and, so, FDI has been booming. But readers may be surprised to hear that net FDI (NFDI) has actually been negative in the last 4 mths (–$2.40 bn in September 2025; –$0.167 bn in October; –$0.446 bn in November; –$1.61 bn in December).

Gross inflows have been substantial: $6.60 bn in September 2025; $6.54 bn in October; $6.41 bn in November; $5.84 bn in December. But outflows have exceeded inflows. This does not denote a crisis. Rather, it’s something to cheer —the outflows reflect success.

TOI

TOI

Why India's FDI turning negative is reason for cheer

Outflow of funds has exceeded inflows for the past four moths, but there is no cause for worry. It is a sign of booming capitalism

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

Your Privacy is Important to us

Opt out of the sale or sharing of personal information

TOI

Why India's FDI turning negative is reason for cheer

Outflow of funds has exceeded inflows for the past four moths, but there is no cause for worry. It is a sign of booming capitalism

{{{h1}}}

{{{h1}}}

{{{h3}}}

{{{offerprice}}}

{{{h3}}}

{{{offerprice}}}

{{{h1}}}

{{{h1}}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}

{{{h1}}}

{{h2}}