Net FDI decline reflects investment uncertainty in India: Congress

New Delhi: The Congress on Sunday said the decline in net FDI inflows into India reflects tremendous investment uncertainty in the country, with more businesses choosing to invest abroad.

AICC general secretary Jairam Ramesh said in a post on X that the just released RBI data reveals that Net FDI inflows into India in 2024-25 plunged by an unprecedented 96 per cent to a measly $0.4 billion.

"Whatever whitewashing of an official explanation for this precipitous fall is being provided, the fact remains that this reflects tremendous investment uncertainty in India - which is deterring not only foreign investors but Indian companies as well, who would rather invest abroad than at home," Ramesh said in his post.

"We ignore the implications of the dramatic decline at our own peril," the Congress leader said.

The data was released as part of the RBI's May edition of its monthly bulletin.

Net FDI moderated to $0.4 billion during 2024-25 from $10.1 billion a year ago, reflecting the rise in net outward FDI and repatriation FDI, the RBI report said.