Source: The Hindu
Context: India attracted $30.7 billion in gross foreign direct investment during the April–June 2026 quarter — the highest level in at least 15 years. Net FDI rose to its highest since June 2022.
Key Figures to Remember
| Measure | Amount |
|---|---|
| Gross inflows | $30.7 billion |
| Gross outflows | $22.8 billion |
| Net FDI | $7.8 billion |
What is Foreign Direct Investment?
It means investment made by a company or individual from one country into a business or company located in another country, with a lasting interest or significant control. e.g. If a Japanese company invests in an Indian automobile factory and establishes or acquires a stake in the business, that investment is FDI.
Why is FDI important for India?
- Brings foreign capital into India.
- Creates jobs and employment.
- Brings new technology and skills.
- Improves productivity and competitiveness.
- Helps expand manufacturing and infrastructure.
- Can increase India’s exports.
- Supports overall economic growth.
FDI vs FPI
- FDI: Long-term investment in a business, usually involving significant influence/control.
- FPI: Foreign investors mainly buy financial assets such as shares and bonds without seeking management control.
