NEW DELHI: Foreign direct investment has made a strong comeback with inflows rising 67.7% to $11 billion in Aug, while net inflows – after factoring in outward FDI and remittances – were pegged at $3.3 billion as against net outflows of $103 million in Aug 2025.Based on the current trend of over $55 billion FDI inflows, on a gross basis, during April-Aug, govt officials are confident of India topping the $100-billion mark during the current financial year, a first for the country. Net inflows during the first five months of the fiscal were estimated at $19 billion during April-Aug, 68% higher than a year ago, according to the latest data released by the Reserve Bank of India. During April-Sept 2026, FDI flows in China (based on actual use) added up to Yuan 548.8 billion ($82.2 billion), which was a decline of 4.3%, according to a Chinese media report.
In India, FDI through the equity investment route shot up 87.5% during the month to nearly $7.5 billion, while reinvested earnings were flat at just under $2.2 billion. On the outflows side, repatriation was also 26% higher at $5.8 billion. There was an 11% fall in outward FDI to $1.9 billion, according to the latest data.Govt has been seeking to boost FDI inflows and has been less bothered about outward FDI with policymakers arguing that it also reflects the growing global footprint of Indian companies, which are seeking to be part of the global value chain.A large part of the FDI intentions announced are related to data centres, some of which have started flowing. While latest disaggregated data is unavailable, during the first quarter, services accounted for 36% of the inflows, followed by 14% in computer hardware and software.
