India’s Net FDI Stays Negative for Fifth Month, Jan 2026
Why in the news
RBI data showed outflows exceeding inflows again in January 2026, signalling pressure on the external sector.
Key facts
- Net FDI: about -$1.4 billion, the largest outflow in three months.
- Streak: fifth straight negative month.
Outflows (YoY)
| Component | Change | Value |
|---|---|---|
| Outward FDI by Indian firms | +5.4% | $2.1 billion |
| Repatriation and disinvestment | +97.3% | $4.9 billion |
Outward FDI went mainly to the USA, Singapore, the UK and the UAE.
Causes and impact
- Profit booking, weaker fresh inflows amid global slowdown and geopolitical tension, and overseas expansion by Indian firms.
- Strain on BoP, forex reserves and the rupee.
Exam angle
- Terms: repatriation, disinvestment, outward FDI.