Finsamudra Desk
CareEdge Ratings projects net FDI inflows will more than double even as gross FDI stays near record highs, as profit repatriation by foreign parents moderates.
India's net FDI inflows are projected to hit $15 billion in FY27, more than double the $6.9 billion recorded in FY26, according to CareEdge Group Ratings.
The gap between gross and net FDI explains the story. In FY26, foreign companies invested $94.53 billion in gross FDI into India, but global parent companies repatriated record profits back home to hedge against high overseas interest rates, shrinking net capital retained to just $6.9 billion.
In FY27, CareEdge expects this dynamic to shift: gross FDI stays near record highs, repatriation outflows moderate as global rates stabilise, and FDI policy tweaks replace blanket land-border restrictions with flexible thresholds.
When net FDI doubles, it signals foreign multinationals are reinvesting profits into local factories, data centers, and supply chains rather than using India purely as a high-yield profit engine to send cash back to headquarters.
Rising net FDI points to deeper multinational capital commitment inside India, which typically flows into expanding manufacturing capacity, warehousing, and infrastructure — sectors that generate fresh credit demand for term loans, working capital, and equipment finance that DSAs and lenders originate.
For NBFCs and banks financing corporate and MSME supply chains linked to these multinationals, moderating repatriation outflows and stabilising global rates could mean steadier FX and funding cost conditions, supporting more predictable loan pricing over FY27.
Sources
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