Negative Net FDI in September 2025: -$2.4 Billion
Why in the news
RBI data showed net FDI at -$2.4 billion in September 2025, a second straight negative month: more money left than came in.
About FDI
Cross-border investment in a business aimed at a lasting interest, typically 10% or more equity.
| Form | Meaning |
|---|---|
| Greenfield | New operations or facilities |
| M&A | Buying stakes in existing firms |
| Reinvested earnings | Profits ploughed back locally |
| Intra-company loans | Parent-to-subsidiary loans |
- Benefits: long-term capital, technology and managerial know-how, jobs, exports, healthier competition.
Possible causes
- Global risk aversion.
- Stronger dollar and higher returns abroad.
- Regulatory uncertainty prompting divestment.
- Profit repatriation by multinationals.
Implications
- Pressure on forex reserves and the rupee.
- Signals foreign caution on growth; infrastructure and sector expansion may suffer.
- Government may respond with incentives or reforms.
FDI versus FPI
The data covers FDI (long-term stakes in assets or factories), not FPI (trading in equity or debt securities).
Exam angle
- Net FDI, September 2025: -$2.4 billion.