CPI(M)'s Brittas slams Centre over falling net FDI after govt cites increased repatriation

John Brittas, CPI (M) Member of Parliament (MP), on Thursday lashed out at the Central government, saying that while the government celebrates gross foreign direct investment (FDI), the truth lies in net FDI.

In a post on X, Brittas wrote, "Net FDI has crashed by 97% - from ‘USD 27.99 bn in 2022-23’ to just ‘USD 0.96 bn in 2024-25’!!. Meanwhile, foreign investors have taken out nearly USD 180 bn through repatriation and disinvestment in four years. If India is such an attractive investment destination, why is net FDI collapsing? You cannot hide an investment crisis behind gross numbers. And despite relentless propaganda, the Centre's own data show Kerala has outperformed several major States in attracting FDI during the last four years..."

Centre says net FDI falls due to higher repatriation

His remarks followed the Centre's statement in Parliament on Tuesday that net Foreign Direct Investment (FDI) has fallen in recent years, dropping from $27.99 billion in FY23 to $6.95 billion in FY26, primarily due to higher repatriation by foreign investors and an increase in Overseas Direct Investment (ODI) outflows, PTI reported.

Minister of State for Finance Pankaj Chaudhary said that the increasing trend of repatriation highlights that India is not just attracting foreign capital but also delivering strong returns, which boosts its reputation as a reliable investment destination.

In a written reply to the Rajya Sabha, Chaudhary quoted RBI data and said that in FY24, net FDI moderated to $10.13 billion and further to $960 million in FY25. However, in gross terms, India registered a record FDI inflow of $94.84 billion in FY26, compared with $80.61 billion in FY25.

He said, "The decline in net FDI in recent years recovered to USD 6.95 billion in FY26 from USD 0.96 billion in FY25. The recent trend in net FDI inflows is associated with increased repatriation/disinvestment by foreign investors and rising Overseas Direct Investment (ODI) outflows."

He added that the increase in ODI outflows is supported by the liberalised overseas investment rules that were introduced in 2022, enabling Indian companies to boost their presence in international markets, enhance their global competitiveness, and contribute to the long-term growth of the Indian economy.

Govt trying to control inflation: MoS Finance

Responding to another question, the MoS Finance said that the government is actively undertaking a series of measures to control inflation and lessen its impact on consumers, especially the poor and the middle class.

Chaudhary added that the Centre is continuously monitoring the prices of essential commodities and undertaking fiscal, administrative, and supply-side measures to contain inflation, particularly to protect low- and middle-income households.

He noted that daily price monitoring is backed by periodic reviews conducted by the Inter-Ministerial Committee (IMC), which recommends steps to improve domestic availability of essential commodities, including changes to import and export policies.

According to him, the government has adopted a range of measures to stabilise supplies, such as expanding buffer stocks of essential food items, selling procured grains in the open market, facilitating imports, restricting exports during supply shortages, imposing stock limits on select commodities to increase market availability, and offering certain food items under the Bharat brand at subsidised prices.

He added that the government is also providing free food grains to around 81 crore beneficiaries under the National Food Security Act. In addition, annual incomes of up to ₹12 lakh, and up to ₹12.75 lakh for salaried individuals after the standard deduction, have been exempted from income tax to boost consumers' disposable income.

(with PTI inputs)