Gross FDI vs. Net FDI
Conceptual Clarity
A critical distinction for UPSC examinations:
- Gross FDI = Total fresh equity inflows into India from abroad (includes reinvested earnings and intra-company loans per balance of payments norms; but for DPIIT statistics, it primarily refers to equity inflows)
- Net FDI = Gross FDI inflows minus outward FDI (Indian companies investing abroad) minus repatriations/disinvestments (foreign companies taking money out of India)
- Repatriation/Disinvestment = Foreign investors withdrawing equity capital or remitting profits — increases when global investors restructure portfolios or exit Indian markets
- Data source: DPIIT (Department for Promotion of Industry and Internal Trade) tracks FDI equity inflows
- RBI's Balance of Payments (BoP) data tracks net FDI on a broader basis (including reinvested earnings and debt instruments)
- Negative net FDI does not mean India has no investment; it indicates outflows temporarily exceeded inflows
● Tracked since April 24, 2026 · last seen May 22, 2026 · updates as the daily brief publishes
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