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Net FDI Fall of 98.2% in May 2025 Reported by RBI

24 July 20251 min read
ECONOMYNet FDI Fall of98.2% in May 2025Reported by RBI24 July 2025safalsetu.com

Why in the news

The RBI’s July 2025 bulletin showed net foreign direct investment in May 2025 collapsing by 98.2% compared with May a year earlier.

Key facts

  • Net FDI = gross FDI inflows minus gross FDI outflows over a period.
  • Gross inflows cover equity capital, reinvested earnings and other long-term capital.
  • Gross outflows are investments made abroad by domestic entities.
CategoryLeading names
Source countriesSingapore, Mauritius, UAE, US (over 75% of inflows)
Recipient sectorsManufacturing, financial services, computer services
Outward FDI destinationsMauritius, US, UAE

Exam angle

  • Publication: RBI bulletin (July 2025); decline: 98.2%.
  • Formula: net FDI = inflows – outflows.

Test yourself

1. By what percentage did net FDI in India fall in May 2025 compared with May 2024, per RBI's July 2025 bulletin?

The bulletin reported a 98.2% decline.

2. How is net FDI calculated?

Net FDI = gross FDI inflows - gross FDI outflows.

3. Which is NOT among the top FDI source countries listed in the notes?

Singapore, Mauritius, UAE and the US were listed; Japan was not.