India’s net FDI in May 2025 dropped to a shocking $35 million.

That’s a 98% crash compared to last year’s inflows.

Rising repatriation and global capital tightening are the key reasons.

Startups and NBFCs saw reduced foreign appetite this quarter.

Manufacturing and pharma still drew modest capital inflows.

Experts say policy reforms and trade pacts may reverse the trend.

SEBI and DPIIT are reviewing FDI caps to attract new investors.

It may be a short-term blip—not a structural shift just yet.

Smart investors see this as a buy-the-fear opportunity.

Keep an eye on July–August data for clearer signals.