CPI(M)’s Brittas slams Center over falling net FDI after government announces increased repatriation | Today’s news
CPI (M) Member of Parliament (MP) John Brittas on Thursday hit out at the central government, saying that while the government celebrates gross foreign direct investment (FDI), the truth lies in net FDI.
In a post on X, Brittas wrote: “Net FDI plunged by 97% – from ‘$27.99 billion in 2022-23’ to just ‘$0.96 billion in 2024-25’!!. Meanwhile, foreign investors withdrew nearly $180 billion through repatriation, India is so attractive repatriation and loss. crash You can’t hide the investment crisis behind raw numbers A despite relentless propaganda, the Centre’s own data shows that Kerala has outperformed several major states in attracting FDI over the past four years…”
The Center says net FDI is falling due to higher repatriation
His remarks followed the Centre’s statement in Parliament on Tuesday that net foreign direct investment (FDI) has declined in recent years from $27.99 billion in FY23 to $6.95 billion in FY26, mainly due to higher repatriation of foreign investors and increase in foreign direct investment (ODI) outflow, PTI reported.
Minister of State for Finance Pankaj Chaudhary said the growing repatriation trend underscores that India is not only attracting foreign capital but also generating strong returns, reinforcing its reputation as a reliable investment destination.
Read also | Government relaxes FDI rules for inventory-based e-commerce firms to boost exports
In a written reply to the Rajya Sabha, Chaudhary cited RBI data and said net foreign direct investment eased to $10.13 billion in FY24 and further to $960 million in FY25. However, in gross terms, India saw a record FDI inflow of $94.84 billion in FY26 compared to $80.61 billion in FY25.
He said: “The decline in net FDI in recent years has recovered to USD 6.95 billion in FY26 from USD 0.96 billion in FY25. The recent trend in net FDI inflows is associated with increased repatriation/disinvestment by foreign investors and increasing outflow of overseas direct investment (ODI).”
He added that the increase in ODI inflows is supported by the liberalized overseas investment rules, which were introduced in 2022, enabling Indian companies to strengthen their presence in international markets, increase their global competitiveness and contribute to the long-term growth of the Indian economy.
Read also | “Insurance sector has seen strong interest from foreign investors since 100% FDI”
Government tries to control inflation: MoS Finance
In response to another question, the Ministry of Finance said that the government is actively taking a number of measures to control inflation and reduce its impact on consumers, especially the poor and the middle class.
Chaudhary added that the center continuously monitors the prices of essential commodities and takes fiscal, administrative and supply-side measures to curb inflation, especially to protect low- and middle-income households.
He noted that daily price monitoring is supported by regular reviews conducted by the Inter-Ministerial Committee (IMC), which recommends steps to improve domestic availability of essential commodities, including changes in import and export policies.
According to him, the government has taken a number of measures to stabilize supplies, such as expanding buffer stocks of staple foods, selling purchased grains in the open market, facilitating imports, restricting exports in case of shortage of supplies, imposing stock limits on selected commodities to increase market availability and offering some foods under the Bharat brand at subsidized prices.
He added that the government is also providing free food grains to around 81 million beneficiaries under the National Food Security Act. In addition, annual income of up to ₹12 thousand and up ₹12.75 lakh for individuals with standard deduction salary has been exempted from income tax to increase the disposable income of consumers.
