India FDI rebound to $15bn FY27
Analysis based on 7 articles · First reported Jul 20, 2026 · Last updated Jul 20, 2026
The projected rebound in FDI and potential FPI inflows could strengthen India's capital account and support the rupee. However, RBI's forward book unwinding may limit currency gains, while policy changes aim to attract Chinese FDI.
A CARE ESG Ratings Limited report projects India's net foreign direct investment (FDI) to rebound to $15 billion in FY27 from $7 billion in FY26, driven by healthy gross inflows and moderating repatriation outflows. Gross FDI rose 18% YoY in FY26 to $94.8 billion, with April FY27 inflows up 65% to $15.3 billion. Repatriation outflow growth moderated from 51.6% in FY24 to 5% in FY26. Policy measures include a threshold-based FDI framework for land-bordering countries (notably China), tax exemptions for FPIs in government securities, and expanded investment limits. The State Bank of India's unwinding of its forward book is expected to cap rupee appreciation. The report also expects India's balance of payments to turn positive in FY27 after two years of deficit, with the rupee averaging 93-94/USD.
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