News Global India's FDI Inflows Decline Marginally to $6.4 Billion in November, Net Outflows Reduce SignificantlyIndia's FDI Inflows Decline Marginally to $6.4 Billion in November, Net Outflows Reduce Significantly
India's FDI flows in November showed gross inflows declining marginally to $6.4 billion from $6.5 billion in October, while net FDI outflows improved significantly, reducing from $1.6 billion to $446 million. Singapore, Mauritius, the US, and UK accounted for over half of outward FDI, with manufacturing, financial, insurance, and business services sectors representing more than 70% of outbound investments.
*this image is generated using AI for illustrative purposes only.
India's foreign direct investment flows presented a mixed picture in November, with gross inflows experiencing a marginal decline while net outflows showed significant improvement compared to the previous month.
FDI Flow Analysis
The latest data reveals contrasting trends in India's FDI performance during November. While gross foreign direct investment inflows to India decreased slightly, the overall net position improved substantially due to reduced outflows.
| FDI Metric: | November | October | Change |
|---|---|---|---|
| Gross FDI Inflows: | $6.40 billion | $6.50 billion | -$0.10 billion |
| Net FDI Outflows: | $446 million | $1.60 billion | -$1.15 billion |
Geographic Distribution of Outward FDI
The geographic analysis of outward FDI flows shows concentrated investment patterns among key jurisdictions. Singapore, Mauritius, the United States, and the United Kingdom collectively accounted for more than half of India's total outward FDI during this period. This concentration reflects established investment corridors and strategic business relationships between India and these major economies.
Sectoral Breakdown of Outward Investments
The sectoral distribution of outward FDI demonstrates clear preferences among Indian investors. Manufacturing emerged as a dominant sector for overseas investments, alongside financial services, insurance, and business services. Together, these sectors represented more than 70% of total outward FDI flows from India.
| Sector Category: | Share of Outward FDI |
|---|---|
| Manufacturing, Financial, Insurance & Business Services: | >70% |
| Other Sectors: | <30% |
Investment Flow Implications
The November data indicates that while India continues to attract substantial foreign investment, the pace of gross inflows experienced a slight moderation. However, the significant reduction in net outflows from $1.60 billion in October to $446 million in November suggests improved capital retention and potentially more selective outbound investment strategies by Indian companies.
The concentrated nature of both geographic destinations and sectoral preferences in outward FDI reflects strategic investment decisions by Indian businesses, focusing on established markets and core business areas where they possess competitive advantages.
16
