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India's economy will register robust FDI flow despite tariffs

The Sunday Guardian

|

November 30, 2025

In August 2025, India faced a setback as net Foreign Direct Investment (FDI) during the month fell 159% with more money leaving the country than entering.

- SHWETA SHALINI

India's economy will register robust FDI flow despite tariffs

Gross investments were at $6,049 million, 30.6% lower than the level in August last year and 45.5% lower than previous month. As per official data, it was only the second time this financial year that outflows exceeded inflows. The likely trigger was the US tariff of 25% additional tariff on India - over and above the reciprocal tariff of 25%. To duck the potential tariff implications, suppliers and investors preempted their investment decisions resulting in India setting a fifty-month high of $11.11 billion in July 2025.

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