Explainer: What caused India's negative FDI in August
In August 2025, India saw its net foreign direct investment (FDI) turn negative, with $616 million more leaving the country than coming in.
This is a sharp drop compared to August last year and only the second time it's happened this financial year.
The main reason? Outbound flows topped inbound investments, despite $6 billion coming in.
How much money came in and out?
Foreign companies pulled $4.9 billion out of India in August, while Indian firms invested $1.7 billion abroad—so more money left than arrived.
That tipped the FDI balance into the red for the month.
What's the bigger picture?
Even with August's dip, India's net FDI from April to August 2025 hit $10.1 billion—up 121% from the same period last year.
Steady inflows and fewer repatriations helped, and Indian companies have been active overseas too.
So, while monthly numbers can swing, the bigger trend is still positive.