According to foreign direct investment data for December

Solution

In December 2025, India recorded net foreign direct investment of negative $1.6 billion, marking the fourth consecutive month of negative net inflows. Net FDI becomes negative when outward investment and repatriation of capital exceed fresh inflows from foreign investors. During this period, foreign companies repatriated profits and disinvested funds from India, while Indian companies increased their outward investments abroad. As a result, the net balance of FDI flows turned negative even though gross inward investment remained relatively strong. This trend reflects shifts in investment flows rather than a complete decline in foreign investor interest.