Net foreign direct investment (FDI) rose to $6.6 billion in April 2026, its highest level in nearly five years, driven by a 65% surge in gross inflows, an analysis of official data shows.

In other words, the data released by the Reserve Bank of India on Monday shows that the total amount of direct investment that entered the country in April 2026 exceeded the amount leaving it by $6.6 billion. The corresponding figure in March 2026 was $917 million. April’s net FDI figure was the highest since May 2021.  

The surge in gross inflows even overshadowed the fact that outward FDI by Indian companies also rose to a historic high in April 2026. 

Nevertheless, the data for April marks a significant turnaround from just a few months ago, since net FDI had been negative for six consecutive months up to February 2026. 

Surge in inflows

Gross FDI in April 2026, or the total amount of direct investment that entered the country that month, surged to $15.3 billion — the highest since at least March 2021, the earliest month for which data is easily available. This figure was 65% higher than in April last year, and 131% higher than in March 2026.

To further put this figure into context, the gross FDI inflows in the single month of April 2026 was more than 16% of the amount that came in the entire financial year 2025-26. 

“Source wise, more than 75% of the FDI flows came from Japan, Singapore and Mauritius,” the RBI said in its monthly bulletin report. 

Slower outflow growth

Gross outflows rose, too, but at a significantly slower pace, to $8.7 billion in April 2026 from $7.7 billion in April last year — a growth of 13.7%. 

Within this, outward FDI by Indian companies rose nearly 42% in April 2026 to $4.8 billion, the highest level since at least March 2021. 

“As regards outward FDI, around 80% of the flows were directed to the U.S. and the Cayman Islands,” the RBI said. “Financial, insurance and business services, and the manufacturing sector accounted for more than 90% of the outward flows.”