India's Net FDI Story

India's headline FDI numbers keep climbing, yet the money actually staying in the country tells a very different story. RBI balance-of-payments data show net foreign direct investment collapsed from a pandemic-era peak of US$ 44.0 billion in 2020-21 to a mere US$ 1.0 billion in 2024-25, before recovering only partially to US$ 6.9 billion in 2025-26. Gross inflows on the direct-investment account hit a record US$ 98.3 billion in 2025-26 - so where did the rest of it go, and what does the gap say about India as a place to park long-term capital?