India registers record gross FDI inflow of $94.84 billion in FY26
New Delhi, July 28
India registered a record gross FDI inflow of $94.84 billion in FY 2025-26 as compared to $80.61 billion in FY 2024-25, the Parliament was informed on Tuesday.
The decline in net FDI in recent years recovered to $6.95 billion in FY 2025-26 from $0.96 billion in FY 2024-25. The recent trend in net FDI inflows is associated with increased repatriation/disinvestment by foreign investors and rising Overseas Direct Investment (ODI) outflows, Minister of State for Finance Pankaj Chaudhary said in a written reply to a question in the Rajya Sabha.
The ODI outflow on account of liberalised ODI rules notified in 2022 is helping Indian entities to enhance their business footprints abroad, enabling them to compete in the global market, adding to the strength of the Indian economy in the long run. The increasing trend of repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination, the minister further stated.
According to the United Nations Conference on Trade and Development's (UNCTAD) latest World Investment Report, India has improved its position by two ranks to become the world's 11th largest recipient of foreign direct investment (FDI) with inflows surging nearly 44 per cent to $38.89 billion in 2025. The country was placed in the 13th position among global FDI recipients in 2024, with inflows of $27.09 billion.
"India continued to strengthen its position as a major investment destination in 2025, supported by an active policy agenda aimed at broadening its investment base beyond services and accelerating advanced manufacturing," the UNCTAD report stated.
India's rebound contrasted with a relatively subdued trend across developing economies, where FDI inflows increased just 2 per cent. Developing economies in Asia recorded a 3 per cent rise.
India also attracted the world's largest announced greenfield investment projects in 2025. US-based Alphabet Inc announced a $14.5 billion investment in a data centre in India, topping the global list. Poland also emerged as a major investor after Hynfra announced a $4 billion investment in Andhra Pradesh, the report said.
— IANS
Reader Comments
As someone working in tech in Bangalore, I see the impact of these investments firsthand. The $14.5B Alphabet deal is huge—it will boost our digital infrastructure. But let's not forget, FDI is double-edged; we must ensure Indian startups don't get crowded out.
The repatriation point is interesting—foreign investors are making profits and taking money out, which shows confidence. But why is FDI net only $6.95B? That's a fraction of the gross figure. We need to understand why so much is leaving. Is it because of policy uncertainty or global factors? 🤷♂️
Proud moment for India! Moving up to 11th globally is no small feat. But my concern is the regional distribution—most FDI goes to Maharashtra, Karnataka, and Delhi. What about Bihar, UP, or Northeast? We need balanced growth, not just metro-centric development.
I moved my manufacturing unit from China to Gujarat last year because of the production-linked incentive scheme. India's policy environment is getting better, but let's be real—bureaucracy and red tape are still huge. If we fix that, FDI could easily cross $150B.
The UNCTAD report mention of greenfield projects is promising—$14.5B from Alphabet means data centers, jobs, and tech advancement. But we should also highlight Poland's $4B investment in Andhra—that's a sign India is attracting non-traditional investors. Jai Hind! 🇮🇳
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