India's FDI Paradox: Why Foreign Money Is Quietly Leaving

On paper, India is still a magnet for foreign capital.

Gross foreign direct investment into India rose roughly 13% over the twelve months ending January 2026, climbing to about $90.

The twist lies in what happens after the money arrives.

This matters because gross and net FDI tell two very different stories.

The shortfall in net FDI is being driven by two distinct trends, and understanding both is key to grasping the paradox.