Foreign direct investment (FDI) in India has dropped sharply, with actual FDI falling to $26.6 billion in FY 2023-24, a 37% decrease from the previous year and the lowest since 2006-07. According to RBI data, the decline is driven by a surge in foreign companies repatriating funds, which reached a record $44.4 billion, up 51% from the prior year. While gross investments were stable at $71 billion, increased disinvestments have significantly reduced net FDI, highlighting challenges in retaining foreign capital.