Gross FDI robust during May-June; net FDI moderates

Gross foreign direct investment (FDI) to India remained strong during the May June period. However, net FDI moderated during this period due to higher outward FDI, RBIs monthly bulletin said.

Net foreign direct investment (FDI) fell 52% year on year to $1 billion in June, from $2.2 billion same time last year. Gross investments stood at $9.2 billion in June, versus $7 billion in May.

The US, Cyprus and Singapore together accounted for more than three-fourths of total FDI inflows. According to experts, FDI inflows are perceived to be a more stable source for India’s foreign exchange reserves compared to portfolio flows.