Foreign direct investment into India is holding close to record levels, but the pattern within these inflows is becoming more selective. Morgan Stanley says gross foreign direct investment stands at $90.8 billion on a 12-month trailing basis as of January 2026, rising to this level from $80.3 billion in January 2025. At the same time, net foreign direct investment drops sharply to $0.5 billion, one of the lowest levels on record, due to rising profit repatriation and a surge in outward investments. Morgan Stanley says global capital continues to enter India, but it is concentrating in a narrower set of sectors. Services, targeted manufacturing segments, and digital infrastructure are receiving the bulk of inflows, while outflows are rising across profits and overseas expansion by Indian firms.