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Net FDI Decline Reflects Investment Uncertainty in India: Jairam Ramesh

  • The Reserve Bank of India reported a 96% decrease in net inflows of foreign direct investment to $353 million during the 2024-25 fiscal year.
  • This sharp decline occurred as foreign capital repatriation reached $51.5 billion, the highest in nearly a decade, while Indian companies increased overseas investments to $29.2 billion.
  • Gross FDI inflows grew to $81 billion, concentrated over 60% in manufacturing, financial services, energy, and communication sectors, sourced mainly from Singapore, Mauritius, UAE, Netherlands, and the US.
  • The RBI noted this pattern signals a mature market with smooth foreign investor entry and exit, reflecting positively on India's economic environment despite investment uncertainty observed by Congress leader Jairam Ramesh.
  • Ramesh warned that ignoring this dramatic FDI decline is perilous, highlighting the shift of Indian firms investing abroad amid persistent uncertainty affecting foreign investment inflows.
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The Economic Times broke the news in on Friday, May 23, 2025.
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