India's record gross FDI inflows shrink after heavy repatriation and outbound investment
In Q1 FY27, India recorded $30.66 billion in gross FDI, but 44% was sent abroad as dividends, royalties and equity sales, while another 31% left through Indian firms' overseas investments.
The April-June quarter of 2026-27 saw India’s gross foreign direct investment reach a 15-year high of $30.66 billion. However, foreign investors withdrew nearly half of that amount via dividends, royalties and equity disposals. At the same time, Indian companies invested abroad, accounting for roughly a third of the gross inflow. These outflows sharply reduced the net capital retained in the country, raising questions about the durability of domestic demand.
Why it matters
The story shows how much of India's touted FDI surge actually stays in the economy, affecting growth prospects.
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