India's net FDI to rebound to $15 billion in 2026-27
India's net FDI inflows are expected to bounce back to $15 billion in 2026-27, after dropping to just $6.9 billion in FY26 (2025-26), much lower than what we've seen in recent years.
CareEdge Ratings says this turnaround is thanks to stronger investments coming in and fewer funds leaving the country.
India capital account shows recovery signs
The capital account surplus took a hit last year but is already showing signs of recovery, with repatriation outflows down by 8.7% in April 2026 (April FY27).
India's updated FDI policy is expected to attract more targeted foreign investments, especially from neighboring countries like China (which accounts for a big chunk of global FDI).
Outbound FDI rose 42% year-on-year in April 2026 (April FY27).
Plus, new perks for foreign investors, like tax breaks and higher limits for NRI/OCI investments, are expected to boost flows into debt markets and keep the momentum going.