Foreign direct investment hits 15-year peak as India attracts global capital

Foreign direct investment into India surged to its highest level in 15 years during the opening quarter of FY27, underscoring the country's continued appeal as a destination for global capital despite cross-border headwinds.

The surge in gross FDI reflects strong underlying investor interest, though headline gains were tempered by substantial capital movements in the opposite direction. Repatriation by foreign investors accounted for 44 per cent of the gross FDI inflow, as multinational corporations moved profits and dividends back to home countries. Additionally, foreign exchange equivalent to 31 per cent of gross FDI flowed outward as Indian companies expanded their international operations.

Despite these outflows, net FDI—which accounts for repatriation and overseas investment—reached a five-year high, suggesting that fresh foreign investment continues to outpace capital departures. The resilience of net FDI inflows indicates sustained confidence among global investors in India's economic prospects and business environment.

The strong FDI momentum reflects India's position as an attractive investment hub amid global economic uncertainties, driven by factors including a large domestic market, growing manufacturing capabilities, and favourable regulatory reforms. The data comes as policymakers focus on sustaining investment flows to support economic growth and job creation.