Foreign investment is considered good in any country. This shows that the world is having confidence in the economy of that country and investors from other countries also want to invest money in that country. Foreign investment in India has definitely increased in the last few years, but in the last three-four years the confidence of foreign investors has started shaking. Due to the US-Israel vs Iran conflict, foreign investors withdrew approximately Rs 2.2 lakh crore from the Indian stock markets. Apart from these latest figures, the figures of the last 4 years are testifying that the Net Foreign Direct Investment (FDI) has decreased by almost 4 times.
Rajya Sabha MP of Marxist Communist Party (CPM) Dr. John Brittas had asked a question related to this in the Upper House of Parliament. He had asked for the figures of Foreign Direct Investment (FDI) in the last 4 years. Along with this, he had also asked for state wise and category wise details. Besides, information was also sought on how many foreign investors had withdrawn their money from India. He also asked whether the government had tried to find out the reasons for withdrawal of investments. Minister of State for Finance Pankaj Chaudhary has given a written reply to this.
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Here it is important to understand what Net FDI means. In fact, the difference between the amount of foreign investment that comes in and the amount that goes out every year is called Net FDI. For example, if in a year foreign investment of Rs 10 comes to India and in the same year foreign investors withdraw Rs 6, then the net FDI will be 10-6 i.e. only Rs 4.
What do the figures say?
Figures given by the Finance Ministry show that more investors are withdrawing money than the investment coming into India. The result of this is that in just 4 years the net FDI has decreased by almost 4 times. If we look at the figures of the last two years, more people have withdrawn their money than the increase in investment by investors.
Investments of about $ 71.35 billion are expected to come to India in 2022-23 and $ 94.84 billion are expected to come in 2025-26. That means in about 4 years the money coming in increased by only 32.92 percent.
In these four years, outflow i.e. withdrawal of money by foreign investors has almost doubled. This outflow was $29.35 billion in the year 2022-23 but it reached $54.04 billion in 2025-26. That means outflow has increased by 84.12 percent in 4 years. Foreign investors withdrew $44.47 billion from India in 2023-24 and $51.49 billion in 2024-25.
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The effect of these figures is that there is turmoil in the Indian market. The figures clearly show that while the incoming investment increased by only 32.92 percent, the money withdrawn increased by 84.12 percent. Its impact can be clearly seen on net FDI.
Net FDI is decreasing
This reply given by the Finance Ministry shows that in the last 4 years, net foreign direct investment has decreased by almost 4 times. Net foreign investment for the year 2022-23 was US $ 27.99 billion i.e. approximately Rs 2.67 lakh crore. In 2025-26, it remained only 6.95 billion US dollars i.e. approximately 66480 crores. Net FDI was $10.13 billion in 2023-24 and only $0.96 billion in 2024-25.
Where is the investment happening?
If we look at the figures according to state and category, Maharashtra is at number 1 in terms of maximum investment. Karnataka has also attracted tremendous foreign investment in the last two years. Karnataka received investment of $ 6619 million in 2024-25 but it almost doubled in 2025-26 and investment came to $ 12,939 million. A good amount of foreign investment has also come in Gujarat, Delhi, Tamil Nadu and Haryana.
The maximum foreign investment in India has been in the service sector and computer hardware and software sector. In 2025-26, investment of about 24 thousand million dollars was made in these two sectors together. Apart from this, many foreigners have also invested their money in trading, non-conventional energy, food processing, construction and trading.
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