Why it is in the news
Data released by the Reserve Bank of India (RBI) late on 25 September 2026 showed net foreign direct investment (FDI) of $7.35 billion in July 2026 — the highest monthly figure since May 2021 ($8.80 billion). Gross FDI was $14.58 billion, the third-highest in six years; against July 2025, net FDI was up 64% and gross FDI 24%.
The exam angle
Issue: India attracts record gross FDI yet retained very little of it in 2024-25. Is a five-year-high monthly net figure the start of a durable recovery, and what policy mix turns gross interest into net capital formation?