India, Nov. 30 -- In August 2025, India faced a setback as net Foreign Direct Investment (FDI) during the month fell 159% with more money leaving the country than entering. Gross investments were at $6,049 million, 30.6% lower than the level in August last year and 45.5% lower than the previous month. As per official data, it was only the second time this financial year that outflows exceeded inflows. The likely trigger was the US tariff of 25% additional tariff on India over and above the reciprocal tariff of 25%. To duck the potential tariff implications, suppliers and investors pre-empted their investment decisions resulting in India setting a fifty-month high of $11.11 billion in July 2025.

The Indian economy has been facing turbulen...