India records $94.5B FDI inflows

India’s gross foreign direct investment rose 16.7% to a record $94.5 billion in the financial year ended March 2026, according to Reserve Bank of India data reported on May 22. The figure marked the fastest growth in six years and exceeded the previous peak of $84.84 billion recorded in 2021-22, according to reports by The Times of India and The Indian Express. Net FDI also improved to $7.65 billion from less than $1 billion a year earlier, the reports said. The numbers arrived as Indian officials have been arguing that the country is drawing more long-term capital even as companies rethink supply chains and manufacturing locations. ### Where did the $94.5 billion figure come from? The Reserve Bank of India published the underlying data in its latest releases and bulletin tables on foreign investment inflows, which Indian media cited on Friday and Saturday. The Times of India reported gross FDI at $94.5 billion for 2025-26, while The Indian Express put the figure at $94.53 billion, reflecting a rounding difference rather than a separate estimate. (timesofindia.indiatimes.com) The same reports said the increase helped reverse a four-year decline in net FDI. Net inflows were estimated at $7.65 billion to $7.7 billion in 2025-26, up from under $1 billion in the previous financial year, as gross inflows strengthened and repatriation pressures eased. ### Why are gross and net FDI telling different stories? (timesofindia.indiatimes.com) Gross FDI measures total inflows before subtracting money that foreign investors repatriate or withdraw. Net FDI is the balance after those outflows are counted, which is why India can report a record gross number and still show a much smaller net figure. (timesofindia.indiatimes.com) April-November 2025 data had already pointed in that direction. A Press Information Bureau release in February said gross FDI inflows in the first eight months of 2025-26 rose to $64.7 billion from $55.8 billion a year earlier, citing sustained investor confidence despite a weaker global backdrop. ### How does this compare with India’s recent FDI trend? India’s previous official messaging had pointed to $81.04 billion of FDI inflows in 2024-25, up 14% from $71.28 billion in 2023-24, according to a government release issued last year. (indianexpress.com) The new $94.5 billion figure extends that rise and sets a fresh annual high. Commerce and Industry Minister Piyush Goyal said on May 23 that India had recorded its highest-ever gross FDI inflow of about $95 billion in the year ended March 2026. (pib.gov.in) Fortune India quoted Goyal as saying the Reserve Bank of India had announced the figure a day earlier and described it as evidence of growing global investor confidence. (pib.gov.in) ### What are officials and commentators saying about the jump? Piyush Goyal has repeatedly linked FDI growth to India’s policy framework, including wide use of the automatic route for foreign investment and efforts to expand manufacturing and digital sectors. A 2025 government release said most sectors are open to 100% FDI under the automatic route and described services, software and hardware, and trading as leading recipients in the prior year. (fortuneindia.com) Weekly Voice, in a separate commentary published this week, argued that India is “already reshaping the global economy” through its scale, technology base and consumer market. That piece was analysis, not official data, but it matched a broader line from Indian policymakers that the country is becoming a practical diversification destination for global capital. (pib.gov.in) ### What should readers watch next? The Department for Promotion of Industry and Internal Trade has been publishing periodic FDI fact sheets, while the Reserve Bank of India releases balance-of-payments and bulletin updates that show both gross and net trends. DPIIT’s latest archived fact sheets currently run through 2025, and RBI’s next scheduled data releases will provide the next official check on whether the 2025-26 pace carries into the new financial year. (federalreserve.gov) (dpiit.gov.in)