India’s net foreign direct investment surged to $7.35 billion in July 2026, the highest monthly level in more than five years, according to data released by the Reserve Bank of India.
Net foreign direct investment inflows increased sharply in July amid changes in the global investment environment and improved investment opportunities, according to the RBI data cited in the report.
At $7.35 billion, July recorded the strongest monthly net FDI inflow since May 2021, when the figure stood at $8.80 billion.
On a gross basis, FDI inflows reached $14.58 billion during July, making it the third-highest monthly gross inflow recorded in the past six years.
The latest figures represented a substantial increase compared with July 2025. Net FDI inflows were up 64% year-on-year, while gross FDI inflows increased 24%.
The increase comes amid continued pressure on India’s external sector due to changes in the global investment environment. The RBI data, however, showed a strong pickup in foreign direct investment during July.
The report noted that global developments and investment conditions remain important factors affecting capital flows, while the government and RBI have taken measures aimed at managing external-sector pressures.
