India’s net foreign direct investments (FDI) remained negative for the fourth consecutive month in November 2025, with outflows exceeding inflows by $446 million that month, an analysis of latest data from the Reserve Bank of India (RBI) shows.

The data, released as part of the RBI’s monthly bulletin, shows that the main reason direct investment outflows exceeded inflows in November was because of relatively high repatriations and disinvestments by foreign companies operating in India.

Direct investments are typically made in assets and are viewed as growth-generating, as opposed to portfolio investments, which are generally done in equity and debt for expected returns.

The RBI noted that net foreign portfolio investments (FPI) have also been negative so far in the financial year 2025-26, with uncertainty over the India-U.S. trade deal and the weakening rupee affecting investor confidence.

Steady gross inflows

Gross direct inflows, which is the total amount of direct investment coming into the country, stood at $6.4 billion in November 2025, 22.5% higher than the amount received in November last year. It was, however, marginally lower than the $6.5 billion received in October and the $7 billion in September.

“Gross inward FDI remained steady in November with Japan, Singapore, and the U.S. accounting for more than 75% of total FDI inflows,” the RBI said in its report. “The highest recipients (around 75%) of FDI inflows were the financial services sector, followed by manufacturing, and retail and wholesale trade.”

Higher repatriations

Net FDI, however, which is the balance between outflows and inflows stood at -$446 million, meaning total outflows exceeded total inflows by that amount. Within this, repatriation and disinvestment stood at a five-month high of $5.3 billion in November 2025, albeit 1.2% lower than it was in November 2024.

Outward FDI, which is the investments made by Indian companies abroad, stood at $1.5 billion in November 2025, less than half the $3.2 billion in October.

“Outward FDI moderated in November, with Singapore, Mauritius, the U.S. and the UK accounting for more than half of total outward FDI,” the RBI noted. “Sector-specific breakdown suggests that more than 70% of outward FDI was in manufacturing, financial, insurance, and business services.”

Portfolio investments continue exit

The RBI report said that net foreign portfolio investments were negative for the 2025-26 financial year up to January 16, 2026.

“The uncertainty surrounding the India-US trade deal and the weakening of the rupee have kept net FPI flows to India muted in recent months,” the RBI said. “After a brief phase of net inflows in October and November, FPIs registered net outflows of $4.2 billion in December. Debt flows also turned negative in December after a five-month period.”