Minister of State for Finance Pankaj Chaudhary said India's net foreign direct investment (FDI) recovered to $6.95 billion in FY26 from $0.96 billion in FY25, though it remained well below $27.99 billion in FY23 and $10.13 billion in FY24. He attributed the moderation in net FDI to higher repatriation and disinvestment by foreign investors, along with rising Overseas Direct Investment (ODI) outflows. Despite the subdued net inflows, India registered a record FDI inflow of $94.84 billion in FY26 as compared to $80.61 billion in FY25.
The minister said the increase in ODI outflows, following the liberalised ODI rules notified in 2022, has enabled Indian entities to enhance their business footprints abroad and strengthen their competitiveness in international markets, contributing to the long-term growth of the Indian economy. He added that rising repatriation indicates that India is not only attracting foreign capital but also delivering strong returns, which enhances its reputation as a reliable investment destination.
On inflation, he said the government has been actively undertaking a series of measures to control inflation and mitigate its impact on consumers, particularly the poor and middle class. He said the government continuously monitors the prices of essential commodities and undertakes fiscal, administrative and supply-side measures to contain inflation, particularly to protect low- and middle-income households.
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