CPI(M)’s Brittas slams Centre over falling net FDI after govt cites increased repatriation

CPI M s Brittas slams Centre on FDI Decline

Theindiapostdaily.com – CPI M s Brittas slams the Central government over declining net foreign direct investment figures, challenging official narratives that highlight gross inflows. John Brittas, the CPI (M) Member of Parliament, took to social media on Thursday to question the government’s economic messaging. He argued that while officials celebrate gross FDI numbers, the reality reflected in net FDI tells a different story.

Brittas Highlights Sharp Net FDI Drop

In a post on X, Brittas pointed out that net FDI has crashed by 97 percent, falling from USD 27.99 billion in 2022-23 to just USD 0.96 billion in 2024-25. He noted that foreign investors have simultaneously withdrawn nearly USD 180 billion through repatriation and disinvestment over the same four-year period. Brittas questioned why net FDI is collapsing if India truly remains an attractive investment destination.

He emphasized that investors cannot hide an investment crisis behind gross figures alone. Despite what he described as relentless government propaganda, Brittas claimed that the Centre’s own data reveals Kerala has outperformed several major states in attracting FDI during the last four years.

Government Defends Position in Parliament

Brittas’s comments came after the Central government addressed the issue in Parliament on Tuesday. Minister of State for Finance Pankaj Chaudhary explained that net FDI has indeed fallen, dropping from USD 27.99 billion in FY23 to USD 6.95 billion in FY26. According to PTI reports, this decline stems primarily from higher repatriation by foreign investors and increased Overseas Direct Investment outflows.

Chaudhary argued that the rising repatriation trend demonstrates that India is not merely attracting foreign capital but also delivering strong returns. This, he said, enhances the country’s reputation as a reliable investment destination. In his written reply to the Rajya Sabha, the minister cited RBI data showing net FDI moderated to USD 10.13 billion in FY24 before falling further to USD 960 million in FY25.

However, Chaudhary highlighted that gross FDI reached a record USD 94.84 billion in FY26, compared with USD 80.61 billion in FY25. He clarified that the decline in net FDI had partially recovered to USD 6.95 billion in FY26 from USD 0.96 billion in FY25.

The minister added that the recent trend in net FDI inflows correlates with increased repatriation and disinvestment by foreign investors alongside rising ODI outflows. He noted that ODI growth is supported by liberalized overseas investment rules introduced in 2022, which enable Indian companies to expand internationally and strengthen global competitiveness.

Responding to separate questions, Chaudhary outlined the government’s efforts to control inflation and protect vulnerable consumers. The Centre is monitoring essential commodity prices through fiscal, administrative, and supply-side interventions. Daily price tracking is reinforced by periodic reviews from the Inter-Ministerial Committee, which recommends policy adjustments to improve domestic availability.

The government has implemented multiple measures including expanding buffer stocks, selling procured grains in open markets, facilitating imports, and restricting exports during shortages. Stock limits on select commodities and subsidized Bharat brand food items further support price stability. Additionally, free food grains are provided to approximately 81 crore beneficiaries under the National Food Security Act, while income tax exemptions for annual incomes up to USD 12 lakh aim to boost consumer purchasing power.