Net FDI negative for fourth month in a row in November 2025, outflows exceed inflows by $446 million
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims·
Why in news
The RBI reported that India's net FDI remained negative for the fourth consecutive month in November 2025 as outflows exceeded inflows by $446 million.
Background
In November 2025, India's gross inward FDI was $6.4 billion, but net FDI was -$446 million. Net foreign portfolio investments (FPI) were also negative for the 2025-26 financial year up to January 16, 2026.
Facts for Prelims
- FactNet FDI outflow in November 2025: $446 million
- FactGross inward FDI in November 2025: $6.4 billion
- FactFPI status: Negative for the 2025-26 financial year up to January 16, 2026
- FactRBI attributed negative net FDI to high repatriations and disinvestments by foreign companies
For Mains
Q. Analyze the factors contributing to the volatility of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) in the Indian economy.
Dimensions to cover in your answer
- Currency volatility: Impact of a weakening rupee on investor sentiment and capital flight
- Geopolitical uncertainty: Influence of bilateral trade deal negotiations on portfolio investment flows
- Corporate behavior: Impact of high repatriations and disinvestments on net capital account stability
Keywords: Capital Account · Repatriation · Disinvestment · Portfolio Investment · Foreign Direct Investment
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