What's happening to India's FDI numbers?
Foreign Direct Investment ("FDI"), and its upticking numbers, has always been a very glitzy and exciting headline in India’s business conversations. It dominates boardroom chatter, makes it to the front pages of economic news, and is celebrated as a marker of progress. But beneath all that shine lies a less noticed, yet important undercurrent that deserves more attention. This is the growing trend of short-term investments and rising FDI outflows from India. The recent RBI report points towards worrying shifts , with net FDI inflows collapsing by 98% in May 2025 to just $35 million, as repatriation jumped by 24% and outward investments touched $2.1 billion. Numbers like these should not be brushed aside. They signal a deeper problem and should be read as a cause for concern. They indicate that short-term portfolio investments are growing faster than stable, long-term inflows. Indian companies are choosing to expand operations abroad instead of reinvesting back at home. Sev...