India's net FDI inflows are projected to hit $15 billion in FY27, more than double the $6.9 billion recorded in FY26, according to CareEdge Group Ratings.
The gap between gross and net FDI explains the story. In FY26, foreign companies invested $94.53 billion in gross FDI into India, but global parent companies repatriated record profits back home to hedge against high overseas interest rates, shrinking net capital retained to just $6.9 billion.
In FY27, CareEdge expects this dynamic to shift: gross FDI stays near record highs, repatriation outflows moderate as global rates stabilise, and FDI policy tweaks replace blanket land-border restrictions with flexible thresholds.
When net FDI doubles, it signals foreign multinationals are reinvesting profits into local factories, data centers, and supply chains rather than using India purely as a high-yield profit engine to send cash back to headquarters.
