Indian Firms’ Overseas Investments Surge UPSC
Foreign Direct Investment (FDI) is a key indicator of economic health and global integration for any country. In the fiscal year 2024-25 (FY25), India witnessed a paradoxical trend: while gross FDI inflows reached an all-time high of $81 billion, net FDI plummeted to a mere $0.4 billion, a decline of over 96% from the previous year. This sharp fall is primarily attributed to a surge in outward FDI by Indian companies and increased repatriation of funds by foreign investors, a development that has caught the attention of the Finance Ministry.
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