Have India’s FDI inflows reached $8.8 billion in April?

Mumbai, June 25 (NationPress) In April of this year, India witnessed a remarkable increase in gross foreign direct investment (FDI) inflows, reaching $8.8 billion. This figure surpasses the $5.9 billion recorded in March and the $7.2 billion in April 2024, as reported by the RBI's monthly bulletin released on Wednesday.

Almost half of the FDI inflows this month were attributed to the manufacturing and business services sectors.

India now ranks 16th globally for FDI inflows, accumulating $114 billion in greenfield investments within the digital economy sectors over the past five years (2020-2024), leading all nations in the Global South, according to the bulletin.

In May 2025, foreign portfolio investment (FPI) recorded net inflows of $1.7 billion, primarily driven by the equity segment. The equity market saw gains for the third consecutive month, buoyed by the India-Pakistan ceasefire, the US-China trade truce, and better-than-expected corporate earnings for Q4:2024-25, which enhanced investor sentiment and prompted a portfolio shift toward Indian assets.

Key sectors receiving the most investment included telecommunication, services, and capital goods. After experiencing outflows in the previous month, the debt segment saw a halt in net withdrawals in May, even as the yield differential between Indian and US government bonds remained below 2 percent for most of the month, according to the bulletin.

Non-Resident Indian (NRI) deposits increased to $165.43 billion in April this year, compared to $164.68 billion in April of the previous year.

Foreign Currency Non-Resident Bank (FCNR(B)) deposits saw a 9 percent year-on-year increase in April 2025, with outstanding balances rising to $33.08 billion from $30.26 billion in April 2024.

This represents the most significant percentage growth among the three deposit schemes, despite its smaller share overall. The monthly inflow under FCNR(B) deposits reached $483 million in April 2025, compared to a provisional $272 million in April 2024–26.

The accumulation of foreign exchange reserves has also contributed to the strengthening of the rupee and reflects a robust external balance position, sufficient to cover more than 11 months of the country's exports.

The Indian rupee (INR) appreciated by 0.4 percent month-on-month against the US dollar and exhibited low volatility throughout May 2025. The uncertainty surrounding US trade and fiscal policies has generally bolstered EME currencies against the US dollar, the bulletin noted.