New Delhi, July 23 -- On 27 June, the Reserve Bank of India (RBI) released balance-of-payments data for the January-March quarter and full year 2024-25. One notable point was the sharp drop in foreign direct investment (FDI) inflows in 2024-25. Gross inflows/investments into India stood at $81 billion, or 2.1% of gross domestic product (GDP), last fiscal year.

This figure was lower than the peak of $85 billion (2.7% of GDP) attained in 2021-22. But gross FDI inflows excluding repatriation of equity and other capital fell significantly to $29.6 billion (0.8% of GDP) from a peak of $56.2 billion in 2021-22 (1.8% of GDP).

Essentially, the repatriation of equity and other capital has increased from $28.6 billion (0.9% of GDP) in 2021-22 to ...