India's gross FDI reaches $30.66 billion in Q1 FY27, strongest quarter in 15 years

Key facts

• India's gross foreign direct investment (FDI) hit $30.66 billion in the first quarter of 2026-27, the strongest quarter in 15 years, surpassing the previous peak recorded in Q2 of 2020-21.
• Net FDI in Q1 FY27 stood at a five-year high of $7.84 billion, which is gross inflows minus repatriation and Indian companies' outward investment.
• Net FDI rose 50 per cent from $5.24 billion a year earlier, against a 13 per cent rise in gross inflows.
• Repatriation by foreign investors accounted for about 44 per cent of gross FDI in Q1 FY27, while foreign exchange equal to about 31 per cent moved out as Indian companies invested abroad.
• India's gross FDI inflows fell in FY23 and FY24 but recovered to a record $96.99 billion in FY26.
• Equity inflows hit a six-year high of around $20 billion in the June quarter.
• Japan led equity inflows in the latest quarter, overtaking Singapore, for only the second time in the past 15 years.
• Japan's MUFG Bank bought a 20 per cent stake in Shriram Finance in April, the biggest foreign investment ever in an Indian financial company.
• Sumitomo Mitsui Banking Corporation became the largest shareholder in Yes Bank with a 24.22 per cent stake, and Mizuho Financial Group agreed to take control of Avendus Capital.
• In the latest quarter, banking, insurance and other services took 35.5 per cent of equity inflows, while computer software and hardware took another 14.4 per cent.
• Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said gross FDI could cross $100 billion in FY27.
• RBI Governor Sanjay Malhotra has described the rise in repatriation as a sign of a mature market where foreign investors can enter and exit with relative ease.