June 26, 2025
1 min read

FDI Inflows Hit $8.8 Billion

Top sectors drawing FPI interest included telecommunications, services, and capital goods. While the debt market had seen outflows earlier, net withdrawals paused in May despite a narrow yield gap between Indian and US bonds

India witnessed a sharp surge in foreign direct investment (FDI) inflows in April 2025, with gross inward FDI reaching $8.8 billion, according to the Reserve Bank of India’s monthly bulletin released on Wednesday. This marks a significant increase from $5.9 billion in March and $7.2 billion recorded in April 2024.

Manufacturing and business services accounted for nearly half of the total inflows, signalling sustained investor confidence in India’s core growth sectors. India also ranked 16th globally in FDI inflows and led the Global South in greenfield investments in digital sectors between 2020–2024, attracting a record $114 billion.
Foreign portfolio investment (FPI) also remained strong, registering net inflows of $1.7 billion in May 2025, buoyed by the equity segment. Positive geopolitical developments — including the India-Pakistan ceasefire and a US-China trade truce — alongside strong Q4 corporate earnings, helped boost investor sentiment.

Top sectors drawing FPI interest included telecommunications, services, and capital goods. While the debt market had seen outflows earlier, net withdrawals paused in May despite a narrow yield gap between Indian and US bonds.

Non-Resident Indian (NRI) deposits rose to $165.43 billion in April 2025, up from $164.68 billion a year ago. Among these, Foreign Currency Non-Resident Bank [FCNR(B)] deposits grew 9% year-on-year — the fastest growth among deposit categories — with balances rising to $33.08 billion.

The RBI also noted that India’s forex reserves were strong enough to cover over 11 months of imports, reinforcing a healthy external balance. Aided by reserve build-up, the Indian rupee appreciated by 0.4% month-on-month against the US dollar in May, with low volatility amid global fiscal policy uncertainties.

Previous Story

Rasika Dugal reflects on NYIFF weekend

Next Story

Dr Parag Singhal honoured with OBE

Latest from Economy

India Outpaces Peers in Morgan Stanley Outlook

Global investment firm reaffirms India’s status as top-performing economy in latest growth outlook…reports Asian Lite News India is set to retain its position as the fastest-growing economy among nations tracked by Morgan

Microsoft Cuts Deep

The fresh job cuts come less than two months after Microsoft announced it was laying off more than 6,000 employees…reports Asian Lite News Microsoft is set to cut around 9,000 jobs —

Pakistan misses export target

Pakistan misses export target for 2024-25 despite modest growth, with rising imports widening the trade deficit and prompting urgent cost-cutting measures across key sectors….reports Asian Lite News Pakistan has fallen short of

Govt unveils ₹2 tr dose for jobs

Research Development and Innovation Scheme to provide 50-year interest-free loans to fund managers; focus on AI, quantum, biotech, digital agriculture and critical strategic tech In a double-dose bid to boost growth and

Maruti’s Global Push Breaks Record

June shipments hit 37,842 units, signalling robust global demand Maruti Suzuki India recorded its highest-ever monthly exports in June, shipping 37,842 units and marking a new milestone that highlights the company’s expanding
Go toTop

Don't Miss

Dubai Retains Top Spot for Global FDI in Creative Industries

Dubai’s ‘Zero Government Bureaucracy’ (ZGB) program has played a pivotal