India’s Net FDI Turns Negative in August 2025: RBI Data
Why in the news
August 2025 figures showed foreign investment flows turning choppy.
FDI concepts
| Term | Meaning |
|---|---|
| FDI | Long-term investment by a foreign entity, usually for control |
| FPI | Short-term assets such as stocks and bonds |
| Greenfield | New facilities, such as a factory |
| Brownfield | Acquiring or merging with existing firms |
Causes
- Profit repatriation, uncertainty, high global interest rates, Indian firms investing abroad, policy worries.
Impact
- Short term: rupee pressure, less capital for startups and infrastructure, wider current account deficit.
- Long term: weaker sentiment, fewer jobs and less technology transfer, pressure to liberalise FDI norms.
Exam angle
- 159% decline, August 2025; net FDI = gross inflows minus repatriation.