India has maintained its position as the top recipient of remittances worldwide, receiving $135.4 billion in FY25, as per the Economic Survey 2025-26. The report highlighted an increase in remittances from advanced economies, particularly from skilled and professional workers.
The survey emphasized the need for a collective effort to reduce manufacturing costs to boost India’s export competitiveness. It also mentioned that enhancing manufacturing export capacity could lead to durable external resilience and a stronger currency credibility.
India has been successful in attracting substantial gross investment inflows, amounting to 18.5% of GDP in FY25, despite global financial conditions tightening. According to UNCTAD data, India outpaced other major Asian countries like Indonesia and Vietnam to become the largest recipient of gross FDI inflows in South Asia.
In 2024, India ranked fourth globally in Greenfield investment announcements, with over 1,000 projects, and emerged as the top destination for Greenfield digital investments between 2020-24, attracting $114 billion. Gross FDI inflows in April-November 2025 rose to $64.7 billion, up from $55.8 billion in the same period of the previous year.
The Economic Survey highlighted the fluctuating pattern of Foreign Portfolio Investment (FPI) in India, with alternating cycles of inflows and outflows influenced by global financial changes. The country’s foreign exchange reserves increased to $701.4 billion as of January 16, up from $668 billion at the end of March.
India’s currency performance, according to the survey, hinges on factors such as generating domestic savings, maintaining external balance, attracting stable FDI, and fostering export competitiveness through innovation, productivity, and quality. The country’s external debt reached $746 billion by end-September 2025, with the External Debt to GDP ratio standing at 19.2 percent.
Moreover, the external debt constitutes less than 5% of India’s total debt, reducing external sector risks significantly.
