Gross foreign direct investment (FDI) into India surged to $8.8 billion in April 2025, up from $7.2?billion a year earlier and $5.9?billion in March, the RBI’s June bulletin revealed.

The inflow supports the rebuilding of foreign exchange reserves, with manufacturing and business services accounting for nearly half of the total. Meanwhile, net FDI improved to $3.9?billion as capital repatriation eased.

Key Points:

• Gross FDI inflows rose 22% year-over-year to $8.8?billion in April 2025, assisting the RBI in strengthening foreign exchange reserves amid currency volatility.
• Manufacturing and business services contributed around 50% of total FDI, underscoring strong investor confidence in these sectors.
• Net FDI (gross inflows minus outflows) improved to $3.9?billion, supported by lower capital repatriation compared to last year’s $4.1?billion. 
• Non-resident deposit inflows slowed, and external commercial borrowing rose to $2.8?billion in April, reflecting diversified financing.
• RBI noted that resilient FDI along with rising forex reserves ($698.95 billion by mid-June) helped stabilize the rupee amid global trade and geopolitical uncertainties.