Net FDI flows spurt to five year high in Jul-26, communication, financial and computer services receive bulk of equity inflows

Reserve Bank of India stated in its latest monthly bulletin that foreign direct investment or FDI flows strengthened further in July 2026, supported by robust gross inflows. Communication, financial and computer services were the major sectors, receiving more than four-fifths of the equity inflows. Mauritius, the UAE, and the US were the major source countries, accounting for about 70 per cent of equity inflows. Overseas investments also rose during July after declining for two consecutive months. More than two-thirds of outward FDI flows were directed towards Singapore, the UK, and the UAE. The major sectors witnessing outward FDI were financial, insurance and business services, and manufacturing ? together accounting for about two-thirds of the outward flows. Net Foreign Direct Investment (FDI) came in at US$ 7.3 billion in July 2026 - hitting the highest monthly flow in five years, reflecting robust gross inflows of US$ 14.6 billion. Net FDI in June 2026 stood at US$ 1.3 billion.

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