India continues to stay a beautiful vacation spot for greenfield investments, the RBI Governor, Sanjay Malhotra stated on Friday after saying the financial coverage committee (MPC) choice to holt repo price at 5.25%.
India’s gross overseas direct funding (FDI) inflows rose 16.1% year-on-year to $64.7 billion throughout April–November 2025-26, up from $55.8 billion a 12 months in the past, in accordance with RBI.
“On the exterior financing aspect, gross overseas direct funding (FDI) to India elevated at a sturdy tempo throughout April–November 2025. Web FDI additionally elevated as repatriations declined, regardless of an increase in outward FDI,” Malhotra stated in his speech.
Throughout April–November 2025-26, greenfield venture bulletins stood at $56 billion, decrease than $63 billion a 12 months in the past, with main bulletins by corporations reminiscent of Amazon, Microsoft, Google, MUFG Financial institution and Hynfra.
On portfolio flows, nevertheless, sentiment has been blended. Overseas portfolio funding (FPI) to India this 12 months to this point (April- February 3) recorded internet outflows of $5.8 billion, the RBI Governor stated. Throughout the interval, FPIs recorded internet outflows of $7.5 billion from equities, whereas the debt phase noticed internet inflows of $1.7 billion.
That stated, India’s overseas change buffer stays sturdy. “As on thirtieth January, 2026, India’s overseas change reserves stood at US$723.8 billion, offering a sturdy merchandise import cowl of greater than 11 months,” the Governor stated.
Exports resilient, providers cushion impression of wider commerce deficit
Regardless of international uncertainties, commerce exercise has remained comparatively regular, RBI stated. India’s merchandise exports grew 1.9% year-on-year (YoY) in Q3FY26, supported by commerce diversification efforts, whereas merchandise imports rose 7.9%, resulting in a widening of the commerce deficit. In consequence, the merchandise commerce deficit elevated to $91.5 billion in Q3FY26 from $88.0 billion in Q2FY26 and $78.7 billion in Q3FY25.
The governor highlighted the energy of the providers sector, stating that “strong providers exports and wholesome inward remittance receipts would hold India’s present account deficit for the present 12 months reasonable and sustainable.”
Throughout Q3FY26, providers exports stood at $111.2 billion, rising 7.5% YoY, whereas providers imports rose 2.7% to $53.7 billion. Meanwhie, internet providers exports elevated 12.3% to $57.5 billion throughout the identical interval. Inward remittances grew 10.7% YoY to $39.0 billion in Q2FY26.
Wanting forward, Malhotra stated India’s proactive commerce diplomacy ought to assist exterior demand. “The just lately concluded India-EU free commerce settlement (FTA) and the potential India-USA commerce deal together with a number of different commerce agreements will assist exports over the medium-term. Companies exports ought to stay resilient.”
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